Trustee Steven Balasiano Commences 13 Clawback Actions in True Religion Apparel, Inc.
February 11, 2022, District of Delaware – Trustee Steven Balasiano of the True Religion Avoidance Actions Trust as successor in interest to the Debtors True Religion Apparel, Inc., et al. brings adversary proceedings against thirteen (13) creditors to avoid and recover all “preferential transfers” of property by the Debtors that allegedly occurred during the ninety (90) day period before the commencement of the bankruptcy proceedings of the Debtors pursuant to sections 547 and 550 of the Bankruptcy Code. The Trustee also seeks to avoid and recover from defendants or any other person or entity for whose “benefit transfers were made” under sections 548 and 550 of the Bankruptcy Code.
As alleged in the complaint, the Debtors were founded in Los Angeles, California, in 2002. Debtors design, market, sell, and distribute premium fashion apparel centered on its core denim products using the brand names “True Religion” and “True Religion Brand Jeans.” The Debtor’s financial difficulties that led to the decision to file for Chapter 11 bankruptcy protection are attributable to various factors, including the coronavirus global pandemic.
Trustee Steven Balasiano seeks to recover nearly $519,148.00 from the thirteen cases. IPFS of New York, LLC, Microsoft Online, Inc., Brinks Inc., Wen-Parker Logistics, Inc. are some of the defendants sued by the Trustee.
Honorable Judge Christopher S Sontchi is presiding over the Debtor’s bankruptcy cases. The Law Offices of Joyce, LLC is representing the Trustee. The Debtors commenced the voluntary case under chapter 11 of the Bankruptcy Code on April 13, 2020. The case is In re True Religion Apparel, Inc., et. al. (Reorganized Debtors) and jointly administered under Case No. 20-10941 (CSS)