May 4, 2019, Southern District of New York – Irving H. Picard as a trustee for the substantively consolidated liquidation of the business of Bernard L. Madoff Investment Securities LLC (“BLMIS”) and the Chapter 7 estate of Bernard L. Madoff (“Madoff”) under the Securities Investor Protection Act recently filed a …Read More »
April 30, 2019, Southern District of New York – James S. Feltman, in his capacity as Chapter 11 trustee of TS Employment, Inc. (“TSE”) and Corporate Resource Services, Inc. (“CRS”) recently filed a motion pursuant to Rule 9019(a) of the Federal Rules of Bankruptcy Procedure in the United States Bankruptcy …Read More »
A Trustee Establishes Insolvency by Preponderance of the Evidence-Based upon the Presumption of Insolvency and the Testimony of the Trustee’s Expert
April 30, 2019, Massachusetts – The Chapter 7 Trustee Gary W. Cruickshank for the estate of Debtor Boston Grand Prix, LLC (BGP) brought a lawsuit against the Defendant, George R. Roberts Company (GRRC) to avoid two allegedly preferential transfers made by checks payable to GRRC in the total amount of …Read More »
April 29, 2019, Southern District of New York – In February 2019, the United States Court of Appeal for the Second Circuit unanimously reversed the dismissal of 88 adversary proceedings, wherein the Trustee sought to clawback the stolen customer property for the BLMIS estate. The Trustee aimed to recover the …Read More »
April 18, 2019, New York – Last week the plaintiff, acting at the direction of the Restructuring Committee of the Board of Directors of Sears Holding Corp. filed a lawsuit against former CEO Eddie Lampert, his hedge fund ESL, Seritage Growth Properties, Bruce Berkowitz of Fairholme Capital Management, and various …Read More »
April 12, 2019, Southern District of New York – Last week, the trustee liquidating the estate of SunEdison, Inc. initiated an adversary proceeding against a logistics company – Expeditors International in the New York bankruptcy court seeking to clawback $17 million in payments that SunEdison made to the defendant on …Read More »
A Transfer may be Deemed Fraudulent if the Debtor’s Assets are Unreasonably Small to Generate Sufficient Profits to Sustain Operations
April 6, 2019, New Jersey– Debtor, the Mall at Galaxy, Inc. was engaged in the business of leasing condominium units. Martin J. Sergi was the president, treasurer and a board member of the Debtor since 1986 and was a 90% equity holder in the Debtor since 1997. In addition to …Read More »
Section 548(e)(1) Does Not Condition Avoidance on a Trust Being Deemed Invalid and Unlawful Under State Law.
April 2, 2019, Western District of Texas– Debtor Stephen Jeffery Cyr was an orthopedic surgeon who had a substantial income and enjoyed an extravagant lifestyle. The Debtor and his spouse Leann Marry, also a Defendant in this case, allegedly attempted to shield their income, assets, and lifestyle from creditors, while …Read More »
Supreme Court to Review the Sixth Circuit’s Decision on Tribal Immunity in Greektown Casino Bankruptcy
April 1, 2019, Eastern District of Michigan – Last week, Buchwald Capital Advisors LLC, the Litigation Trustee to the Greektown Litigation Trust urged the U.S. Supreme Court to hear its case seeking to claw back $177 million transferred from a tribe-owned casino in Detroit before it went bankrupt. The litigation …Read More »
Perfection Under Sec. 547 (e)(1) Occurs When a Bonafide Purchaser of a Property Cannot Acquire an Interest that is Superior to the Interest of the Transferee.
March 27, 2019, Northern District of Georgia – Trustee Jason L. Pettie, for the estate of Debtor Mark Louis Greiner, brought a lawsuit against a Defendant Quicken Loans, Inc. to recover and avoid a transfer as a preference under 11 U.S.C. § 547(b) when it recorded a security deed on …Read More »