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Orion Healthcorp Bankruptcy Complaint Filed

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Orion HealthCorp filed with the U.S. Bankruptcy Court a complaint against multiple defendants for avoidance of fraudulent transfers, constructive trust and injunctive relief.

The complaint alleges, “This action seeks to recover funds which are the proceeds of constructive or actual fraudulent transfers and to prevent the further transfer of such funds to the Shareholder Defendants, identified herein. Insofar as some portions of the monies to be recovered are in the possession, custody or control of the Defendant United States, Department of Treasury, Internal Revenue Service (‘IRS’), Plaintiffs seek impression of a constructive trust as to those funds, and a permanent injunction preventing the IRS from distributing those funds to the Shareholder Defendants….Based on the artificially increased stock price, Parmar, Zaharis, and Chivukula were able to secure a purchase price of $309.4 million (the ‘Acquisition Price’) for CHT in connection with the Merger….In total, CHT’s non-Parmar shareholders (the ‘Shareholders’) were paid $183,842,511.75 in cash and were given $39.6 million in promissory notes by CHT in exchange for their CHT shares (the ‘Shareholder Redemption Payments’).”

In addition, “Plaintiffs respectfully request that judgment be entered in their favor and against the Defendants as follows: (a) entering a judgment against the Transferees, finding that the Shareholder Redemption Payments constitute fraudulent transfers pursuant to 11 U.S.C. section 548(a)(1)(A); (b) pursuant to 11 U.S.C. section 548, avoiding the Shareholder Redemption Payments; (c) pursuant to 11 U.S.C. section 550, entering judgment against the Transferees in the amount of the avoided Shareholder Redemption Payments; and (d) providing for such other relief as justice and equity may require.”

Read more Orion bankruptcy news.

The post Orion Healthcorp Bankruptcy Complaint Filed appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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