Miami Metals I, Inc.’s Trustee Seeks to Clawback More Than $ 17M From a Mexico Mining Company 9

January 8, 2021, Southern District of New York – Trustee Donna H. Lieberman of the Miami Metals Litigation Trust (the “Plaintiff) brought a lawsuit against Compania Minera Dolores, S.A. de C.V. (the “Defendant”), seeking a return of transfers worth $17,597,212.50 under Sec. 547 and Sec. 548 of the Bankruptcy Code.

Debtors Miami Metals I Inc. were an internationally-recognized “Good Delivery” refiner of precious metals with a primary focus on gold and silver. The Debtors’ customers and/or suppliers, including Defendant, shipped unrefined, salvaged, recycled, and/or re-purchased gold, silver, and other precious metals to the Debtors for refining from all over the United States and the Western Hemisphere.

The Defendant sold metal primarily consisting of gold, silver, platinum, and/or palladium, to Debtors, in exchange for which the Defendant was, generally, paid in metals by Debtors. In its complaint, the Plaintiff argued that the total avoidable transfers made to the Defendant during the preference period were cash payments in the amount of $17,597,212.50. Hence, those transfers were avoidable as alleged preferences and /or fraudulent conveyances.

The case is In re: Miami Metals I, Inc., et al.  Case No. 18-13359 in the United States Bankruptcy Court for Southern District of New York. Honorable Judge Sean H. Lane is presiding over the Debtors’ case.

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