Trustee asks Genmar creditors to return payments

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The trustee in the Genmar bankruptcy case is asking creditors who received payments within 90 days of the June 2009 filing to return those funds.

“There’s a provision under the code that if some people have been paid prior to filing and received more proportionately than other people have that then the trustee’s duty is to go after those people who received a disproportionate payment to get the money back so [it] can be redistributed proportionately to everybody,” trustee Charles Ries told Soundings Trade Only.

“It doesn’t mean that people that I’m making claims against weren’t owed the money or anything like that,” he added.

Ries said this morning he was unsure how many creditors will be asked to return payments because the accounts were still being studied.

In January 2010, Genmar’s assets sold for $77.05 million, which was to go toward secured claims against the company, most notably money owed to banks. In the bankruptcy filings Wells Fargo and Fifth Third Bank were listed as being owed a combined $75 million.

The new owners purchased Genmar’s assets free and clear of liens, including any debts owed to unsecured creditors.

There were about 4,000 unsecured creditors in the case and their claims exceeded $140 million.

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Comments

11 comments on “Trustee asks Genmar creditors to return payments

  1. realistic

    absolutely criminal… and unfortunately not at all shocking, just like every well laid plot

  2. scracingfan

    Does that mean dealers whose inventories lost money can return their unsold product? Can they ask for their businesses back that may have closed because of the bankruptcy? I’d be telling the trustee and all, anything before the filing was mine,fair and square. Now, kiss my a$$, go court and try and take what was rightfully mine.

  3. Breezeswept

    IRWIN IS SUCH A SCHEMER !!
    BIG IR NEEDS TO SETTLE UP HIS DEBTS OWED OTHERS … BEFORE SOAKING IN NEW WEALTH FROM HIS NEW JD ENDEAVOR.

  4. frmremployee

    Mr. Ries and Irwin need to put down the crackpipe, and make good to all the dealers, vendors, and the families that they destroyed. Oh, I just forgot..there better than everybody else in the industry.

  5. Boat Jockey

    As the court creditors list read for each Genmar brand, it also notes several hundred Genmar employees as unsecured creditors. Good luck with trying to reclaim 90 days worth of paychecks and benefits from former Genmar employees who have already been worked over by the system. Many of which have been forced into finiancial ruins due to Irwin and Roger’s mis-management of the companies and their funds. Why should the unsecured creditors, vendors, and employees be forced to re-pay monies that were owed to them? Maybe I should get my money back on my defective crystal ball which did not inform me of the upcoming Genmar bankruptcy. If we would have known, we could have quit taking Genmar money 90 days ahead of time and saved all this hassle after the fact. This sounds really silly doesn’t it?

  6. F. Glass

    This is called “Preference Payments” and all of the money will go to pay lawyers and court costs.

    None of the creditors will ever see a dime of it.

  7. frmsupplier

    We just received a letter today from Ries saying that we owe over $24,000 to the debtor’s estate. What about the $38,000 that we lost? How can this be legal? I hope to hear comments from some smart attorneys….

  8. DJinNC

    This is not surprising and pretty much standard procedures in these type BKs. What is astounding to me is the number of suppliers who climbed right back on the Jacobs bandwagon when he emerged with the new company.

  9. Get Smart

    Unfortunately, many innocent people are falling victim to this scheme. The “preference” law was written to stop friends and family, who owned companies, from paying large sums of money to one another just prior to filing for bankruptcy. Now, the attorney’s are using that law to make money. I am one of the unfortunate victims and I was contacted by a dozen attorneys from Minneapolis, as soon as the “preference”summons was issued. These guys (attorneys) were like sharks in the water-they smelled blood.
    I urge all of you to fight the injustice. The best way to beat it is by using the media to your advantage. In the eyes of a newsman, this is a great story. (David vs. Goliath) America needs to end this assault on innocent people and start punishing the criminal. Our judicial system stinks and there are not many men with integrity left running the show. Call your congressman and demand that something is done about it.

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