June 30, 2017
The United States District Court for the Eastern District of Pennsylvania entered judgment in favor of BLF client Impala Platinum and against defendant Ashok Kumar Khosla for $9.44 million, plus pre-judgment and post-judgment interest.
The court’s order upheld the March 2017 jury verdict, which found defendants, the shareholders and insiders of closely-held Pennsylvania corporation A-1 Specialized Services and Supplies, Inc., liable to Impala Platinum for constructive fraudulent transfer, based on transfers from A-1 to and for the benefit of its insiders made while A-1 was insolvent.
In March 2016, BLF’s clients Impala Platinum Holdings Limited and Impala Platinum Refining sued A-1's shareholders and insiders for fraudulent transfer, based on transfers from A-1 to and for the benefit of its insiders that were made while A-1 was insolvent. Impala, A-1’s largest creditor, had obtained an arbitration award of more than $200 million against A-1 in December 2015.
The jury found the insiders liable to Impala for constructive fraudulent transfer, and imposed a total of $16 million in damages. The jury allocated 59% of the damages verdict to A-1 shareholder Ashok Kumar Khosla.
During the trial, the remaining defendants reached a settlement with Impala, which resolved all claims against them for a total consideration of $10,715,000. On June 30, 2017, the court enforced the pro rata settlement between Impala and the settling defendants, and entered judgment against defendant Ashok Kumar Khosla in the amount of $10,006,400, giving BLF’s clients a total award and settlement amount of $20,721,400.