Texas Oil Defendants Hit with $2.8M Clawback Suit For Alleged Preferences
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July 20, 2022, US Bankruptcy Court for Southern Texas – Scott A. Rinaldi, in his capacity as trustee (the “Trustee”) of the BJ Services Wind-Down Trust and as sole representative of BJ Services, LLC and BJ Services Management Holdings Corporation (the “Debtors”) , files lawsuits against five Defendants to clawback alleged preference transfers pursuant to sections 547 and 550 of title 11 of the United States Code.
By background, the Debtors were a leading provider of hydraulic fracturing and cementing services to upstream oil and gas companies engaged in the exploration and production of North American oil and natural gas resources. The Defendants had allegedly provided goods and services to the Debtors for the operation of Debtors’ businesses.
The Trustee alleges that BJS Services, LLC transferred its property to or for the benefit of the Defendants on or within the ninety (90) days period prior to the filing of bankruptcy petition. The Trustee seeks to avoid and recover these transfers as alleged “preference transfers”. The claim amount adds up to $2,81,926.24.
The Defendants sued by the Trustee include Polaris Laboratories, LLC; Euler Hermes North America Insurance Company; Dakota Fluid Power, Inc. among others.
In re BJ Services, LLC and BJ Services Management Holdings, LLC, Case No. No. 20-33627, US Bankruptcy Court for Southern Texas.