Debtor Stone Clinical Laboratories Brings Alleged Preference and Subordination Claims Against Whale Capital
January 13, 2022, Eastern District of Louisiana – Plaintiff-Debtor Stone Clinical Laboratories LLC initiates a lawsuit against a venture capital firm, Whale Capital, LP, to subordinate the latter’s claim to the claims of the other unsecured creditors of the Debtor.
Stone Clinical also seeks to avoid any security interest asserted by Whale Capital in the Debtor’s assets as an alleged preference under Sec. 547 of the Bankruptcy Code. Additionally, the Debtor requests the Court to reclassify the notes executed by the Debtor allegedly in favor of Whale Capital as equity and declare that the payments of such notes be paid as equity and junior to the claims of the Debtor’s unsecured creditors. Finally, the Debtor prays the Court to enforce the terms of the operating agreement and, alternatively, equitably subordinate the Whale Capital claim (allegedly over $23 million) to all other creditors under Section 510(c).
IN RE: STONE CLINICAL LABORATORIES, CASE NO.: 21-010923