Haza Foods, LLC Sued for Turnover of Contract Receivables under Sec 542 of the Bankruptcy Code
August 19, 2021, Western District of Texas – Recently, Plaintiff Trustee Ron Satija for the bankruptcy estate of Davila General Contractors LLC urged the Court to enter a judgment in its favor and against the Defendants Haza Foods, LLC and Salon Suites Memorial Gateway, LLC under 11 U.S.C. § 542(b) of the Bankruptcy Code.
Specifically, the Trustee seeks an order requiring Haza Foods to turn over to the Trustee the sum of $198,089.76 and requiring Salon Suites to turn over to the Trustee the sum of $227,160.40, all arising from contract receivables (labor and materials provided and billed prepetition). As per the complaint, these contract receivables allegedly arose from nine (9) different construction jobs with six (6) different owners. The Trustee alleges that the Defendants “neither remitted the contract receivables” due to the estate nor provided a factual and legal basis to excuse payment of the same.
The case is In re Davila General Contractors, LLC administered under case number 21-01038 in the United States Bankruptcy Court for the Western District of Texas.