(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.