Bankruptcy Court Orders Parent Company to Repay Payments Within 90 Days of Filing

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Court Case Digests
October 11, 2022
3599 Industrial and Commercial Machinery and Equipment, NEC
332710 Machine Shops
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Official Comm. of Unsecured Creditors of LB Steel, LLC v. Steelcast Ltd. (In re LB Steel, LLC)
2022 Bankr. LEXIS 2894; __ B.R. __
US
Federal Court
Illinois
United States Bankruptcy Court
Patrick O’Malley; Timothy R. Conway; Edward Keidan; Dr. John Barsom; James A. Falconi
Janet S. Baer

Summary

The Bankruptcy Court in this case dealt with an adversary complaint from the Official Committee of Unsecured Creditors. The committee sought to avoid and recover payments the debtor made within the 90 days leading up to the bankruptcy filing to the parent company. For reasons including that the debtor was insolvent during that 90-day period, the court decided in favor of the committee and ordered the payments avoided and ordered the parent company to repay the debtor’s estate.

See Also

Official Comm. of Unsecured Creditors of LB Steel, LLC v. Steelcast Ltd. (In re LB Steel, LLC)

The Bankruptcy Court in this case dealt with an adversary complaint from the Official Committee of Unsecured Creditors. The committee sought to avoid and recover payments the debtor made within the 90 days leading up to the bankruptcy filing to the parent company. For reasons including that the debtor was insolvent during that 90-day period, the court decided in favor of the committee and ordered the payments avoided and ordered the parent company to repay the debtor’s estate.