Bankruptcy Trustee Seeks Recovery of Debt She Alleges CTA Wrongly Got
The court trustee for liquidated tech products supplier Wynit Distribution is going after CTA to recover $33,000 the association collected from the company a month before it filed for bankruptcy. She alleges the payment qualifies as an improper “preference” action.…
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Wynit paid CTA the money it owed in August 2017 from a Wells Fargo account, said trustee Nauni Manty in an “adversary proceeding” complaint (in Pacer) Thursday in U.S. Bankruptcy Court in Minneapolis. Wynit sought chapter 11 protection the following month, and the case was converted to a chapter 7 liquidation in January 2018, it said. It isn't clear what goods or services CTA as a trade association would have provided and for what purposes to product distributor Wynit, whose still-active website (its phones are disconnected) lists dozens of “recognizable top brands” it once supplied to independent retailers. A CTA spokesperson declined comment Friday. The $33,000 debt Wynit owed CTA was minuscule compared with the claims of top creditors listed in the bankruptcy (in Pacer). It shows Wynit owed Fitbit $31.5 million when the petition was filed 19 months ago. Others in the top 20: Symantec (owed $9.3 million); Canon USA ($6.4 million); McAfee ($3.5 million); Western Digital ($2.3 million); and Amazon Fulfillment Services ($1.7 million).