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Home New Cases Clawback Defendant Alleges “Bare Bones” Complaint, Moves to Dismiss

Clawback Defendant Alleges “Bare Bones” Complaint, Moves to Dismiss

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June 13, 2022, US Bankruptcy Court for the Southern District of Texas – Platinum Oilfield Services, LLC (“Defendant”) brings a motion to dismiss the adversary complaint of John D. Baumgartner (Unsecured Claim Pool Sub-Trustee of the Unsecured Claim Pool Sub-Trust) in the bankruptcy case of Lilis Energy, et al. 

On May 11, 2020, Sub-Trustee filed a complaint to recover avoidable preferences under 11 U.S.C. Sec. 547 and Sec. 550. The Sub-Trustee also pleaded to deny Defendant’s claim under 11 U.S.C. Sec. 502(d) and (j).

The Defendant claims that the complaint consists of a bare allegation of the existence of an antecedent debt, allegedly failing to provide any documentation, supporting facts, or other materials to support such allegation. The Defendant argues that the Sub-Trustee does not plead specific facts about the relationship between the parties and thereby Sub-Trustee arguably fails to show the creation of an antecedent debt between the parties. Additionally, motion alleges that the complaint does not identify the debtor that incurred the debt or the debtor that paid the debt. 

The Defendant avers that the Sub-Trustee Baumgartner failed to properly plead the elements of Sec. 547 of the Bankruptcy Code and requests the Court to dismiss the complaint claiming that subject transfer is “neither avoidable nor does Defendant possess property recoverable” under Sec. 550 of the Bankruptcy Code. 

John D. Baumgartner v. Platinum Oilfield Services, LLC (In re Lilis Energy, et al.), AP No. 22-03149, US Bankruptcy Court for the Southern District of Texas. 

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