(Download) "In re Morris Communications Nc Inc." by United States Court of Appeals for the Fourth Circuit # Book PDF Kindle ePub Free
eBook details
- Title: In re Morris Communications Nc Inc.
- Author : United States Court of Appeals for the Fourth Circuit
- Release Date : January 13, 1990
- Genre: Law,Books,Professional & Technical,
- Pages : * pages
- Size : 87 KB
Description
RUSSELL, Circuit Judge This is a proceeding under 11 U.S.C. § 548(a)(2)(A) and (B) of the Bankruptcy Code to void a transfer of corporate stock by the debtor to the defendant Ashley Communications, Inc. Section 548(a)(2)(A) and (B) provides that any transfer of property by a debtor while insolvent at any time within one year of the filing of his bankruptcy proceeding may be voided if the debtor has not received ""reasonably equivalent value."" The bankruptcy judge found all requirements for voidance of the transfer in this case present except the receipt at the time of the transfer of ""fair equivalent value,"" as established by market value. He found expressly that the transfer was made in good faith ""between a willing purchaser and a willing seller at a price upon which [the parties] agreed to at arm's length."" However, he dismissed this fact because he said the parties to the transfer ""were not well informed and not knowledgeable."" He hypothesized that had the parties been ""knowledgeable,"" they would have agreed that the ""fair equivalent value"" would have been ""$50,000 at that time"" (i.e., when the sale was made). He therefore declared that such amount ($50,000) represented the market value of the stock on the date of the sale (May 17, 1984).1 He accordingly held that the transfer did not satisfy the requirement of ""fair equivalent value"" and held the transaction void. However, he directed under section 548(c) that the defendant should be repaid its purchase payment of $5,000 and allowed $20,000 for service in enhancing the value of the transferred property. The defendant challenges on appeal the conclusion that it did not give ""fair equivalent value"" at the time of the transaction and the Trustee cross-appeals the bankruptcy judge's ruling under section 548(c). 75 Bankr. 619 (Bankr. W.D.N.C. 1987). We reverse the avoidance of the transfer and remand for the entry of judgment in favor of the defendant. I.
 "In re Morris Communications Nc Inc." by United States Court of Appeals for the Fourth Circuit # Book PDF Kindle ePub Free){kind=link}