GenCanna, now known as OGGUSA Inc. after the company sold its assets as part of its Chapter 11 bankruptcy, paid the money to Pillsbury for legal services in December 2019, according to an attachment to Monday’s suit. The trustee, Oxford Restructuring Advisors LLC, is seeking the money under Section 547 of the Bankruptcy Code, which allows debtors to recover payments made to creditors within 90 days of filing for bankruptcy.
“There’s no allegation of wrongdoing by Pillsbury,” said Aaron L. Hammer, counsel for the trustee. “This is a straightforward bankruptcy preference claim, where the firm got paid on pre-bankruptcy invoices to the detriment of GenCanna’s other creditors.”
Hammer said that the trustee satisfied its due diligence requirement to examine the claims prior to filing suit, adding that the trustee also tried resolving the preference claim with Pillsbury, but the parties could not reach an agreement.
The trustee is represented by Aaron L. Hammer, John W. Guzzardo and Nathan E. Delman of HMB Legal Counsel and John P. Brice of Wyatt Tarrant & Combs LLP.
