Grant of Summary Judgment Affirmed Because Appellant Did Not Demonstrate that Debtor was Left with Unreasonably Small Capital
October 7, 2014
Publication| Bankruptcy & Corporate Restructuring
On September 30, 2014, the United States District Court for the District of Delaware entered an order affirming the Delaware Bankruptcy Court’s grant of summary judgment to a defendant/appellee on a plaintiff/appellant’s claims to avoid and recover two equity distributions totaling $55 million as constructively fraudulent transfers. Whyte v. Ritchie SH Hldgs. LLC, et al (In re: SemCrude, L.P.), Civ. Nos. 13-1375 & 13-1376 (D. Del. Sept. 30, 2014). The issues on appeal included the bankruptcy court’s conclusion that the appellant had not demonstrated that the debtor was left with unreasonably small capital after the distributions at issue.