(7th Cir. October 13, 2015)
The Seventh Circuit affirms the bankruptcy court’s order granting summary judgment to the casino defendant. The Chapter 11 plan administrator sought to avoid and recover fraudulent transfers made to the casino. The debtor had made about $8 million in fraudulent transfers to its owner, who then used the funds at the casino. The casino asserted the good faith defense in 11 U.S.C. § 550(b)(1). The casino did not have knowledge of the voidability of the transfer avoided and acted in good faith in accepting the funds for value given. Opinion below.
Author: Matt Lindblom