The adversary proceedings against AFX Capital Markets Ltd, AFX Capital U.S. Corp. and STO Super Trading Online at the New York Eastern Bankruptcy Court have been delayed again, as indicated by a brief Court entry on February 25, 2021.

Let’s recall that this case was brought by Esther Duval, the Chapter 11 trustee of Avenica and Gallant Capital Markets. The Complaint alleges that in 2015 and 2016, Gallant Capital Markets deposited about $2.35 million into a Gallant account maintained at AFX. About two weeks before Gallant commenced its bankruptcy case, there was a balance of approximately $2.4 million in the Gallant account at AFX. Back then, Gallant requested several times that AFX returned Gallant’s funds. These requests, however, were disregarded.

The complaint further alleges that AFX withdrew the remaining balance, lacking any authorization and without any basis, in violation of the automatic stay.

In these adversary proceedings brought by Gallant’s Chapter 11 Trustee, the Trustee seeks a turnover of Gallant property and recovery of assets of the Gallant estate.

Back in September 2019, the Chapter 11 trustee filed a motion for sanctions, arguing that the AFX defendants have engaged in a manipulative strategy of delay, obfuscation, and fabrication in failing to comply with a stipulation of settlement.

Ever since, however, this motion has been pending. On February 25, 2021, Ronald J. Friedman, Esq., As Liquidating Trustee, filed a letter with the Court stating that the hearing on this motion has been adjourned again.

The conference scheduled for February 25, 2021, has been adjourned to April 8, 2021 at 10:30 a.m.

There is no explanation for the delay. In fact, the letter says that these matters may be adjourned from time to time without further notice other than the announcement of such adjournment in open Court or filing a notice of adjournment on the docket.

The case, launched in April 2018, has thus far produced no positive results neither for Gallant Capital Markets, the trustee, or the victims of AFX Capital.