February 23, 2018, New York – The trustee for bankrupt ambulance company TransCare Corp. hit Lynn Tilton and her private equity firm Patriarch Partners with a $10 million clawback suit in New York bankruptcy court, alleging the onetime owners of TransCare blew up the company through mismanagement and an “outrageous” scheme. In an adversary proceeding, Chapter 7 Trustee Salvatore LaMonica stated that Tilton and Patriarch were to blame for TransCare’s failure. The trustee’s complaint alleged that the Debtor made transfers worth $1,089,524.10 to the defendants in the ninety (90) days before the petition date, thus liable to returned as a preference pursuant to Sec. 547 of the Bankruptcy Code. The trustee also alleged that the debtor received less than the reasonably equivalent value in exchange for the Transfer and hence was fraudulent pursuant to Sec. 548 of the Bankruptcy Code.
The answer, in this case, is due by April 30, 2018. The case is 18-01021-smb, In re TransCare Corporation, et al.
The debtor, TransCare’s business was to provide emergency medical transportation services to hospitals and communities in New York, including 911/EMS services, basic life support, advanced life support, critical care transport, ambulette and wheelchair van and special venue transportation services. The Debtors also provided non-emergency response services and critical care transfers to and between health care facilities, hospitals, nursing homes and other specialty care facilities