Matador Resources Company Files Motion for Summary Judgment Against Trustee’s Alleged $11.6M “Fraudulent Transfer” Claim
August 26, 2021, Northern District of Texas – Last week, Defendant Matador Resources Company filed a motion for summary judgment on the “actual and fraudulent transfer” claims of Plaintiff Trustee Daniel J. Sherman of the estate of Debtor Permian Crude Transport, L.P.
The Trustee’s claims are premised on the notion that Debtor allegedly paid $11.6 million for oil to Defendant that it “did not receive”. According to the Trustee, the oil was taken instead by one of the Debtor’s affiliates, and thus, it “did not receive the value” exchanged for the $11.6 million.
Defendant alleges that it was a “good faith transferee”, “gave reasonably equivalent value”, and had no reason to believe that the Debtor was insolvent when it got the transfers. Defendant further alleges that because both Debtor and its affiliate filed for bankruptcy within months of each other, Debtor intended to leave Matador with neither the money nor the oil, while the Debtor and its affiliate keep both on several counts including “breach of fiduciary duty”, “aiding and abetting breach”, objection to claims and avoidance of “preference and fraudulent transfers” worth $ 1 million. According to Defendant, if Debtor’s affiliate got the oil, it did so as Debtor’s “alter ego” or “agent”, and Debtor must be equitably estopped from saying otherwise.