FI Liquidating Trust Files 125 Lawsuits to Recover Alleged Preferential and Fraudulent Transfers Worth $32M in the Bankruptcy Case of Fred, Inc.
September 9, 2021, District of Delaware – FI Liquidating Trust for the bankruptcy estate of Fred, Inc. recently initiated about one hundred twenty-five (125) lawsuits to avoid and recover transfers against several creditors and to disallow any claims held by them. Specifically, the Trust seeks to avoid and recover all preferential transfers of property that occurred during the ninety (90) day period before the commencement of the bankruptcy proceedings of Fred’s, Inc. and its affiliated debtors under sections 547 and 550 of chapter 5 of title 11 of the Bankruptcy Code. The Trust also intends to recover the transfers that may have been fraudulent conveyances under sections 548 and 550 of the Bankruptcy Code.
Some of the largest creditors against whom the Trust has initiated lawsuits include Interactive Communications International, Inc. for a return of about $8,126,977.21, C.H. Robinson for $3,454,012.88, Hallmark Marketing Company LLC for a return of $ 1,326,922.21, and Coca-Cola Bottling Company United, Inc. for $1,228,328.36.
Two years ago, the Debtors filed for bankruptcy on September 9, 2019. The case is In re Fred’s, Inc. et al in the United States Bankruptcy Court for District of Delaware under Case No. 19-11984 (CTG). The law firm of Womble Bond Dickinson (US) LLP is representing the Trust and Honorable Judge Craig T Goldblatt is overseeing the Debtors’ bankruptcy case.