In re Allen
- Summarized by Ferve Ozturk , BakerHostetler
- 8 years 8 months ago
- No. 13-3543, Slip Op. (3rd Cir. September 26, 2014)
- Where a debtor avoids a fraudulent transfer and obtains a recovery order, it has sufficiently "recovered" those funds such that they are part of the debtor's estate under the Bankruptcy Code.
- Procedural context:
- Reversing and remanding District Court.
- In 1999, Advanced Telecommunications Network ("ATN"), transferred $6 million to its former owners, including Daniel Allen ("Allen"), as part of a shareholder litigation settlement. ATN later filed for bankruptcy and avoided the transfer and obtained a recovery order. Allen subsequently filed his own bankruptcy case. He argued that the funds were never recovered and were therefore property of his estate.
- Fisher, Scirica, Cowen
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