August 14, 2020, New York – Last week, Hooper Holmes, Inc. Liquidation Trust (the “Plaintiff” or the “Trust”) initiated more than twenty (20) adversary proceedings in the Hooper Holmes, Inc. d/b/a Provant Health, et al. (the “Debtors”) bankruptcy case.
Hooper Holmes, Inc. is a national health risk assessment provider in United States. It provides medical and other underwriting information on insurance policy applicants to the life and health insurance industry.
The plaintiff, so far, seeks to recover transfers worth more than $1M, as made by one or more of the Debtors to several creditors in the ninety (90) day period preceding the commencement of the Debtors’ bankruptcy cases, as preferential transfers pursuant to § 547(b) or as fraudulent conveyances, according to § 548 of the Bankruptcy Code.
The two largest cases in the group have allegedly been filed against – Salesforce.com Inc. and Sprint Communications, Inc. for return of $142,572 and $138,609 respectively.
By way of background, about two years ago, on August 27, 2018, each of the Debtors filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code. On December 28, 2019, the Debtors filed their amended joint plan of liquidation. A month thereafter, on January 31, 2019, the Court entered an order confirming the plan and it became effective on February 12, 2019. The Plan established the Trust as a liquidating trust, for the sole purpose of liquidating the assets, with no objective to continue or engage in the conduct of trade or business except, to the extent reasonably necessary to, and consistent with, the liquidating purpose of the Trust and the plan. Pursuant to the Plan, the Trust has authority to maintain, prosecute, settle, dismiss, abandon, or otherwise dispose of avoidance actions.
The Court has already issued the summons to several defendants in the lawsuits. The answer to plaintiff’s complaint is due by September 11, 2020. The pre-trial conference is scheduled for October 9, 2020.
The lead bankruptcy case is: 7:18-bk-23302 in the United States Bankruptcy Court for the Southern District of New York. Honorable Judge Robert D Drain is presiding over the Debtors’ case. Klestadt Winters Jureller Southard & Stevens LLP is representing the plaintiff in the Debtors bankruptcy cases.