Liquidating Trustee for the Fresh Acquisitions, LLC Demands Declaratory Relief over Rights and Claims under Disputed Agreement
May 02, 2022, Northern District of Texas – David Gonzales, the Liquidating Trustee for the Fresh Acquisition Liquidating Trust, files a complaint against Planned Administrators, Inc., JLL Consultants, Inc. and Meta Advisors, LLC for a declaratory relief determining the rights, claims and interests under the disputed agreement.
The Trustee claims that all causes of action of the Debtors (Fresh Acquisitions, LLC and its subsidiaries) “were vested” in the Trust under the approved Chapter 11 Plan for Liquidation and that all of the Debtors’ assets as provided in Section 541 of the Bankruptcy Code “were transferred to and vested” in the Trust.
The dispute revolves around an “Administrative Services Only (ASO) Agreement” entered into between Fresh Acquisitions’ subsidiary Ryan’s Restaurant, Inc. (“RRI”) and Defendant Planned Administrators, Inc. (“PAI”). According to the complaint, the RRI assigned all or a portion of its rights under the ASO agreement to Fire Mountain LLC and/or Buffets, Inc. (“Buffets, Inc.”) and both RRI and Buffets, Inc. “restructured” themselves into limited liability companies. It has been alleged that in earlier bankruptcy cases filed by RRI and Buffets, Inc., certain of their assets were assigned to Defendants- JLL Consultants, Inc. and Meta Advisors, Inc.
The Trustee asserts that PAI holds a credit balance of $98,657.93 that had accumulated during and after the term of the ASO agreement. He contends that all rights, claims, and interests under the ASO agreement and in and to the credit balance are property of the the Fresh Acquisitions bankruptcy case under Section 541 of the Bankruptcy Code and are now part of “Liquidating Trust Assets” and seeks a declaratory judgment to determine its entitlement over the credit balance.
The case is David Gonzales, Trustee of the Fresh Acquisitions Liquidating Trust v. Planned Administrators, Inc., et al., AP No. 22-03044, US Bankruptcy Court for the Northern District of Texas.