Skip to main content

Official Committee of Unsecured Creditors v. Citicorp N. Am. Inc. (In re Tousa Inc.)

Official Committee of Unsecured Creditors v. Citicorp N. Am. Inc. (In re Tousa Inc.)

Ruling
Liens given by debtor's subsidiary to secure credit line six months prior to petition date was avoidable.
Procedural posture

Plaintiff Official Committee of Unsecured Creditors filed an adversary proceeding against defendants, a chapter 11 debtor, the debtor's subsidiaries, a bank, and others, seeking a determination, inter alia, that liens the subsidiaries gave the bank to secure a revolving line of credit were avoidable under 11 U.S.C.S. §§ 544(b) and 548, and state law, and that payments made to the debtor's creditors to settle a lawsuit were also avoidable.

ABI Membership is required to access the full summary of Official Committee of Unsecured Creditors v. Citicorp N. Am. Inc. (In re Tousa Inc.) Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Commercial opinion summary, case decided on October 13, 2009 , LexisNexis #1109-084