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Home New Cases Center City Healthcare, LLC Debtors Seek to Clawback $600k From Huron for Services Provided to Non-Debtor

Center City Healthcare, LLC Debtors Seek to Clawback $600k From Huron for Services Provided to Non-Debtor

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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.

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