Center City Healthcare, LLC Debtors Seek to Clawback $600k From Huron for Services Provided to Alleged Non-Debtor
April 4, 2022, Delaware – Plaintiff debtors Center City Healthcare, LLC, et al. filed an adversary proceeding (AP. No. 22-50263) against consulting firm Huron Consulting Services, LLC, seeking to claw back $620,458.79 as alleged constructively fraudulent transfers pursuant to § 548 of the Bankruptcy Code.
The Plaintiffs allege in their Complaint as follows:
i. Huron was engaged by non-debtor Paladin pursuant to a consultancy agreement;
ii. Huron’s services were provided to Paladin;
iii. the Debtors received no benefit or value from the Huron’s services;
iv. The Debtors and not Paladin, paid Huron’s consulting fee pursuant to a combined cash management system; and
v. At the time of the transfers, the Debtors were allegedly insolvent or were rendered insolvent as a result of the transfers.
On June 30, 2019, the Debtors commenced the above-captioned Chapter 11 Cases in the Bankruptcy Court for the District of Delaware. The debtors’ bankruptcy cases are jointly administered under Case No. 19-11466.