More than 300 Clawback Actions Initiated in Dean Foods Company, et al Bankruptcy
July 19, 2021, Southern District of Texas – Trustee Daniel H. Golden of the DFC Liquidating Trust for the estate of Deans Food Company, et al (DFC) recently commenced about three hundred and twenty-one (321) clawback actions against several creditors to avoid and recover alleged preferential transfers of property that occurred during the ninety (90) day period before the commencement of the bankruptcy proceedings of the Debtor and its affiliates (collectively, the “Debtors”) according to sections 547 and 550 Bankruptcy Code. The Trustee also seeks to avoid the transfers that may have been alleged fraudulent conveyances under sections 548 and 550 of the Bankruptcy Code.
Some of the defendants sued by the Trustee in the Debtors’ bankruptcy case include; The Dennis Group, LLC, Unilever United States, Inc., Winn – Dixie Stores, Inc., Truist Equipment Finance Corp, Ruan Logistics Corporation. Tampico Beverages Inc. By way of background, the Debtors manufactured, marketed, and distributed a wide variety of branded and private label dairy and dairy case products, including fluid milk, ice cream, cultured dairy products, creamers, ice cream mix, and other dairy products to retailers, distributors, foodservice outlets, educational institutions, and governmental entities across the United States.
On November 12, 2019, DFC and affiliated debtors filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas. The cases are pending before the Honorable Judge David R Jones and are jointly administered under Case No. 19 -36314. ASK LLP is representing the Trustee in the bankruptcy case.