Defendants Allegedly Refused to Return Equipment and Property, An Asphalt Paving Contractor Seeks Turnover Under Sec. 542 of the Bankruptcy Code
March 15, 2021, District of Colorado - Avery Asphalt, Inc. (“Avery Asphalt”), Avery Equipment, LLC (“Avery Equipment”), Avery Holdings, LLC (“Avery Holdings”), 1401 S. 22nd Avenue, LLC (“1401”), LBLA Ventures, Inc. (“LBLA”), and Regional Pavement Maintenance of Arizona, Inc. (“Regional”) (collectively, the “Debtors”) brought a complaint against Defendants Sean Bulmann and Copper State Pavement Services, Inc. (“Copper State”) for turnover of property under Sec. 542 of the Bankruptcy Code.
Avery Asphalt is the operating company and installs, maintains, and improves roadways, parking lots, and other outdoor surfaces. According to the complaint, Regional, 1401, Avery Equipment, and Avery Holdings own personal property and real estate that Avery Asphalt uses in its business. As alleged in the complaint, Defendant Sean Bulmann organized Copper State to purchase a property from Regional but could not obtain financing or complete the anticipated sale transaction.
Before the Debtors’ bankruptcy, Copper State and Avery Asphalt purportedly contracted to complete paving work (the “Las Vegas Project”). Allegedly, as a part of the Las Vegas Project, Bulmann and Copper State negotiated to use heavy machinery belonging to Avery Equipment. The complaint further avers that under the agreement, Copper State and Bulmann were supposed to return the machinery to Avery Equipment after completing the Las Vegas Project, which they allegedly did not. Debtors made a demand upon Bulmann and Copper State for turnover of the property which Bulmann apparently refused or ignored.
Now, the Debtors request the Court to enter a judgment in their favor and against Defendants for turnover of the property and delivery of the machinery under Sec. 542 of the Bankruptcy Code claiming, that the property is of great value or benefit to the estate of the Debtors.