Trustee asks Genmar creditors to return payments - Trade Only Today

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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