October 27, 2021, District of New Jersey – Plaintiff Charles M. Forman, as Plan Administrator for CTE 1 LLC (“Debtor”), initiates an adversary proceeding against R. Hollenshead Auto Sales & Leasing (“Defendant”) to avoid and recover transfers worth $3,246,200.00 as alleged preferences and fraudulent conveyances.
Defendant is the largest volume wholesale car dealer. The complaint alleges that as of the petition date and continuing post-petition through the sale of the Debtor’s assets, the Debtor owned and operated an automotive dealership known as Lexus of Englewood. Debtor sold, serviced, and provided new and used motor vehicle products to its customers. Debtor filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code on October 27, 2019.
The case is In re CTE 1 LLC (d/b/a Lexus of Englewood), Case Number: 19-30256 (VFP) in the United States Bankruptcy Court for District of New Jersey. The law firm of Gibbons, P.C. is representing the Plaintiff in the Debtor’s bankruptcy case.