Bankrupt Advertiser Sues Radio Disney To Recover Payments Made Through Agency
January 20, 2016 at 11:46 AM (PT)
A bankrupt company is suing RADIO DISNEY GROUP, LLC to recover $442,441.07 in payments for advertising made by its ad agency to the radio network.
DOTS, LLC, in Chapter 11, filed suit YESTERDAY (1/19) in U.S. Bankruptcy Court for the District of NEW JERSEY seeking to rescind payments made through CAPSTONE MEDIA to RADIO DISNEY in NOVEMBER and DECEMBER, 2013 from money held in trust by CAPSTONE. DOTS said that the payments were avoidable transfers under the Bankruptcy Code and made while DOTS was insolvent and within 90 days of its filing for Chapter 11, and gave RADIO DISNEY more than it would have received if the bankruptcy was filed under Chapter 7.