Home New Cases DFC Trustee Initiates Clawback Actions Against 350 Creditors

DFC Trustee Initiates Clawback Actions Against 350 Creditors


November 10, 2021, Southern District of Texas – Daniel H. Golden as Trustee of the DFC Liquidating Trust initiates adversary proceedings against three hundred fifty (350) creditors to clawback transfers. Specifically, the Trustee seeks to avoid and recover all “preferential transfers” of property that occurred during the ninety (90) day period before the Debtor Dean Foods Company’s petition date under sections 547 and 550 of chapter 5 of title 11 of the Bankruptcy Code. The Trustee also seeks to avoid the transfers that may have been “fraudulent conveyances” under sections 548 and 550 of the Bankruptcy Code. Additionally, the Trustee seeks to disallow, pursuant to sections 502(d) and (j) of the Bankruptcy Code, any claims that the Defendants filed or asserted against the Debtors or that had been scheduled for Defendants.

As per the disclosure statement filed in the Court, Debtors were a leading food and beverage company and the largest processor and direct-to-store distributor of fresh fluid milk and other dairy and dairy case products in the United States. On November 12, 2019, the Debtors commenced the bankruptcy case by filing a voluntary petition for relief in the Court under Chapter 11 of the Bankruptcy Code.

The most prominent cases in the group, so far, are :

CreditorComplaint FiledClaim Amount
Saputo Dairy Foods USA LLC08/11/21$37,351,378
Jovon, Inc.08/11/211,257,639.3
Tetra Pak Inc.09/11/21701,632.12
Saputo Cheese USA Inc.09/11/21570,944.20
South Georgia Pecan Company Inc09/11/21567,672.00
Huhtamaki Inc08/11/21539,931.61

The case is – In re Dean Foods Company et al., Case No. 19-36314 (DRJ). Honorable David R Jones is overseeing the Debtor’s bankruptcy case. ASK LLP is representing the Trust.