November 2, 2021, District of New Jersey – Charles M. Forman, in his capacity as Plan Administrator for Debtor CTE 1 LLC, initiates clawback lawsuits against approximately 56 defendants to avoid and recover alleged transfers as preferential and fraudulent conveyances worth over $ 9 million and disallow any claims held by the defendants.
By way of background, on October 27, 2019, the Debtor filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code, commencing the bankruptcy case in the United States Bankruptcy Court for the District of New Jersey. As of the petition date and continuing post-petition through the sale of the Debtor’s assets, which closed on February 28, 2020, the Debtor owned and operated an automotive dealership known as Lexus of Englewood. The Debtor sold, serviced, and provided new and used motor vehicle products to its customers.
The case is In re CTE 1 LLC (d/b/a Lexus of Englewood), Case Number – 19-30256 (VFP). Honorable Vincent F. Papalia is overseeing the Debtor’s bankruptcy case. The Trustee is represented by the law firm of Robert Malone Gibbons P.C. and Michael E. Holt Forman Holt.