Spradlin v. Beads and Steeds Inns, LLC (In re Howland)

(Bankr. E.D. Ky. Oct. 2, 2014)

The bankruptcy court grants the fraudulent transfer defendant’s motion for judgment on the pleadings, dismissing the trustee’s complaint. The trustee’s claim depended on the court substantively consolidating the debtors with a non-debtor entity as of a date prior to the bankruptcy petition date. While there were some facts supporting a finding that the debtors commingled assets with the non-debtor entity, the court found that creditors of each did not consider them a single entity. Based on the trustee’s factual assertions, the court declined to permit substantive consolidation and dismissed the complaint. Opinion below.

2014-10-02 – in re howland

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