Liberty Bridge Trustee Sues Kenneth J. Birnbaum to Clawback $1.5M in Alleged Insider Transfers
January 3, 2022, Southern District of New York – Trustee Kenneth P. Silverman, Esq., for bankruptcy estates of Liberty Bridge Capital Management GP, LLC, et al. initiates an adversary proceeding against Kenneth J. Birnbaum to set aside and recover certain transfers allegedly made by Liberty Bridge pursuant to Sections 105, 502, 544, 547, 548, 550 and 551 of the Bankruptcy Code, New York Debtor and Creditor Law §§273, 274, 275, 276 and 276-a, and New York common law.
Specifically, Silverman argues that between December 7, 2017, and October 31, 2019, Liberty Bridge allegedly made insider transfers in the aggregate amount of $1,309,425.03 to Birnbaum. Silverman further argues that Liberty Bridge also made transfers for $237,181.00 allegedly to third parties for the personal benefit of Birnbaum. Finally, the complaint contends that Liberty Bridge did not allegedly receive fair consideration or reasonably equivalent value in exchange for the above transfers. Accordingly, Silverman requests the Court to enter judgment in its favor and avoid the alleged transfers worth $1,546,606.03 for the benefit of the bankruptcy estate.
The case is In re Liberty Bridge Capital Management GP, LLC, et al., A.P. No. 21-01245-SCC. Hon. Judge Shelley C. Chapman is presiding over Liberty Bridge’s bankruptcy case.