Zenergy Brands Liquidation Trust Sues TCN Holdings For Alleged Breach of Contract
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October 22, 2021, Eastern District of Texas – Plaintiff Jason Rae, in his capacity as Litigation Trustee for the Zenergy Brands Liquidation Trust for the bankruptcy estate of Zenergy Brands, Inc., et al. prosecutes Defendants Donnie Goodwin and TCN Holdings, LLC for alleged breach of contract, fraud, damages, and unjust enrichment. Additionally, Plaintiff seeks to recover transfers over $1 million as alleged fraudulent conveyances from the Defendants.
The complaint alleges that Goodwin and TCN made material misrepresentations in certain of its disclosures to ZP&G in connection with ZP&G’s purchase of Enertrade, compliance with one of the contracts, its business practices et al. ZP&G is a subsidiary of Zenergy.
Specifically, the Trustee alleges that the Defendants’ misrepresentations were reckless because Defendants made the disclosures as positive assertions of fact without knowing their truth. Further, the Trustee also contends that the obligations to make the payments under a promissory note were guaranteed by Zenergy, but Zenergy allegedly received no consideration in exchange for the incurrence of the obligation. Thus, the Trustee argues that ZP&G’s incurrence of obligations under the promissory note and Zenergy’s guaranty of these obligations are avoidable as alleged fraudulent transfers under Section 548 (a)(1)(B) of the Bankruptcy Code.
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