Wynit creditors oppose sale procedures amid dispute over ownership

By Caroline Salls

Pittsburgh, Nov. 3 – Wynit Distribution, LLC’s official committee of unsecured creditors objected to the company’s proposed consignment sale procedures, arguing that the Wynit debtors are looking to sell “consignment inventory and related accounts receivable that they may not own,” according to a Friday filing with the U.S. Bankruptcy Court for the District of Minnesota.

Specifically, the committee said there is an ongoing dispute between the company, its pre-bankruptcy and post-bankruptcy lenders and some consignment vendors regarding Wynit’s property interest in and right to sell or grant security interests in the consigned goods.

“The mere existence of the pending dispute over the consigned goods requires that the consignment sale bid procedures motion not be approved,” the objection said.

The committee said ownership and/or interest in the goods should be determined by adversary proceeding.

According to the objection, moving forward with the proposed bid procedures at this time “is unnecessary and a waste of these estates’ limited resources.”

Eden Prairie, Minn.-based Wynit distributes technology products. The company filed for bankruptcy on Sept. 8 under Chapter 11 case number 17-42726.

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