Continental Traffic Service Faces $2.2 Million Clawback Action in Remington Outdoor Company, et. al. Bankruptcy
January 21, 2022, Northern District of Alabama – Continental Traffic Service, Inc., (CTSI), a supplier of logistic, trucking, and distribution services, is sued for a return of $2,274,714.56 in Remington Outdoor Company, Inc., et. al. bankruptcy case.
Through his complaint, Eugene I. Davis, as the plan administrator supervising the Remington Outdoor Company Creditor Trust, requests the Court to rule in its favor and against CTSI, avoiding $2.2 million under sections 547(b), 548, and 550(a) of the Bankruptcy Code.
The complaint alleges that CTSI is a transferee of transfers allegedly avoidable under Bankruptcy Code sections 547 and 548 and “has not yet paid” the amount of the alleged avoidable transfers under section 550. Accordingly, the complaint seeks to disallow all claims of CTSI against the Debtors’ Chapter 11 estates or the plan administrator until such time CTSI pays an amount equal to the aggregate amount of the alleged avoidable transfers.