PNW Healthcare Holdings & its Affiliates Move for Dismissal of Adversary Proceeding Against Canyon Z, LLC, and 34 Others
May 26, 2021, Western District of Washington – Last month, Plaintiffs PNW Healthcare Holdings, LLC and twenty of its affiliates, as debtors and debtors in possession in the jointly administered chapter 11 cases, filed an “agreed motion” requesting the court to “voluntarily dismiss” their complaint against Canyon Z, LLC, and 34 other defendants according to Rule 41(a)(2) of the Federal Rules of Civil Procedure made applicable by Rule 7041 of the Federal Rules of Bankruptcy Procedure.
The lead case is In re PNW Healthcare Holdings, LLC, et al, case number: 19 -43754-MJH. The Plaintiffs had brought a 20 count complaint against the defendants to recover alleged “preferential” and “fraudulent transfers” worth $1.3 million. The complaint also alleged “breach of contract”, “good faith”, “tortious interference” with contractual relations, “negligent misrepresentations”, “intentional misrepresentation”, “equitable subordination” claims, etc.