Electrotek Corp & its CEO Sued, Plaintiff seeks Judgment to Disallow or Recharacterize $9.5M Claim
November 5, 2021, Northern District of Texas – Plaintiff, the Official Committee of Unsecured Creditors of Electrotek Corporation (“Debtor”), brings a complaint against Debtor and its CEO, Dhirajal Babaria, to determine the validity, priority, and extent of secured status under 11 USC § 506.
Specifically, Plaintiff brings an action to disallow or recharacterize “scheduled secured claims” of Defendant Babaria against the estate of Debtor’s unsecured or invalid claims. As contended in the complaint, in its Schedule D, the Debtor asserted that Defendant Babaria allegedly held a senior secured interest for $9.5 Million in all of Debtor’s assets. Accordingly, the complaint seeks a judgment from the Court as to the amount, validity, and characterization of Defendant Babaria’s claim.
In re Electrotek Corporation, Case No. 21-30409-mvl-11