On June 26, 2024, Justice Masley of the New York County Commercial Division issued a decision in AT&T Mobility Holdings B.V. v. Grupo Salinas Telecom, S.A. DE C.V., 2024 NY Slip Op. 32169(U), appointing a receiver to collect assets of a foreign subsidiary of a judgment debtor, explaining:
AT&T holds a November 29, 2023 judgment against defendants Grupo Salinas Telecom, S.A. DE C.V. and Grupo Salinas Telecom II, S.A. DE C.V. (Grupo) for over $20 million (Judgment) following a trial before this court for breach of the parties’ Stock Purchase Agreement (SPA). . . . AT&T seeks an order directing Grupo to turnover: (1) all of Grupo’s disclosed and undisclosed cash on hand directly to AT&T; (2) Grupo’s shares of Grupo Elektra S.A.B. de C.V. (Elektra) to a receiver; and (3) Grupo’s shares of Servicios Tplay S.A. de C.V. (STP) to a receiver. AT&T requests appointment of Robert Seiden as receiver.
. . .
AT&T has established that Grupo has custody or control over cash and other assets sufficient to satisfy the Judgment. Indeed, Grupo does not challenge AT&T’s request for turnover of Grupo’s $147,000 cash and 150,000 shares of Elektra that Grupo valued at $10.45 million.
Rather, Grupo focuses on STP, a private Mexican company in which Grupo owns shares worth over $800 million, which far exceeds the amount of the Judgment. . . . [B]ased on Grupo’s responses to AT&T’s information subpoenas, Grupo’s cash and Elektra shares are insufficient to satisfy the judgment. Accordingly, this case differs from CIMC Raffles Offshore (Singapore) Ltd. v Schahin Holding S.A., 2013 WL 12305899 (SD NY, May 1, 2013, No. 13 Civ 52 [JSR]), a case relied upon by Grupo for the proposition that turnover of STP is disproportionate and thus AT&T’s motion should be denied. There, turnover of membership interests was not necessary as CIMC had sufficient cash and liquid assets. Rather, seeking turnover of assets in an amount exceeding the judgment is permissible where the liquid assets of the judgment debtor are insufficient, as they appear to be here. Therefore, the balance of this decision focuses on turnover of STP shares to a receiver.
(Internal quotations and citations omitted).