A BPO company Inculpates Ivy Technology for “Alleged Breach of Contract and Improper Set-off,” Seeks Immediate “Turnover” of Money
February 23, 2021, Southern District of Texas – Plaintiff-Debtor iQor Holdings, Inc., brings a complaint to “turnover estate property, improper setoff, and breach of contract” against Defendant Ivy Technology Master Holdings, LLC under Sec. 542 and 553 of the Bankruptcy Code.
Specifically, iQor sought “turnover” of two separate funds of money – the China BRIC Cash and the HP India Receivables from Defendant. As alleged in the complaint, iQor and Defendant were parties to a Stock Purchase Agreement (the “SPA”) which required Defendant to return receivables from both the funds to iQor. Defendant apparently “failed to comply with its obligations under the SPA and did not return fund receivables to iQor.”
Defendant allegedly “held hostage” approximately $4.9 million of estate property (and is potentially attempting “improper setoff”) while simultaneously bringing “unsupported and undocumented claims” under the SPA against iQor.
The complaint alleges that Ivy commenced litigation against iQor in Delaware Chancery Court, seemingly to retain the estate funds that it was “not entitled to and has improperly withheld.” The complaint further states that Ivy “did not notify” iQor about distributing the funds outside of China.
Now, the Plaintiff-Debtor requests the Court to enter judgment against Defendant ordering the immediate “turnover of receivables from both funds, avoid any attempted setoff, and award damages in favor of iQor concerning the Defendant’s actions.”
The case is In re IQOR Holdings, Inc., et al in the United States Bankruptcy Court for the Southern District of Texas under Case no. 20-34500. Bankruptcy Judge David R Jones is overseeing the Debtors’ case.