Canadian National Railway Company Sued for Return of $1.6M as Alleged Preferential Transfers
March 3, 2021, District of Delaware – Trustee George L. Miller for the bankruptcy estates of Bayou Steel BD Holdings, LLC, et al., (the “Debtors”) brings a complaint against Canadian National Railway Company (the “Defendant”) for avoidance and recovery of alleged preferential transfers under §§ 502(d), 547 & 550 of the Bankruptcy Code.
The Trustee alleges that the Debtors made certain payments to Defendant for goods and/or services provided to the Debtors under invoices or statements submitted by Defendant to the Debtors. The payments were allegedly made during the ninety (90) days period before the filing of bankruptcy by the Debtors. The aggregate amount of the alleged transfers is $1,622,794.23.
Thus, the Trustee argues that the alleged transfers are avoidable preferential transfers under 11 U.S.C. § 547 and that the plaintiff is entitled to recover the transfers under 11 U.S.C. § 550 of the Bankruptcy Code.