(7th Cir. Mar. 11, 2016)
The Seventh Circuit reverses the bankruptcy court's judgment dismissing the committee's fraudulent and preferential transfer claims. The committee brought the claims against the debtor's landlord. The basis of the claims was the debtor's termination of the leases 52 days before declaring bankruptcy. The court holds that there could have been value available to creditors if the leases remained in effect on the petition date. The committee was not seeking to evict the new tenant, but was merely seeking the value that was allegedly lost. The court remands to the bankruptcy court to determine the value of the transfer and any defenses of the landlord. Opinion below.
Judge: Posner
Attorneys for Committee: Kerkman & Dunn, Evan P. Schmit, Gregory M. Schrieber
Attorneys for Landlord: Hudec Law Offices, S.C., Patrick J. Hudec
2016-03-11 – in re great lakes quick lube
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