United States Seventh Circuit

In a bankruptcy action involving the Uniform Fraudulent Transfer Act, which allows a trustee in bankruptcy to avoid transfers made by the bankrupt if the debtor was insolvent on the date of the transfer, ruling for the debtor is affirmed where: 1) a company has enough capital to be able to maintain operations until the end of the curtailment period and then to reopen and operate it until it earns substantial revenue; and 2) undercapitalization is not insolvency.

Appellate Information

• Decided 11/24/2008
• Published 11/24/2008

Judges

• POSNER, Circuit Judge., Before POSNER, WOOD, and TINDER, Circuit Judges.

Court

• United States Seventh Circuit

Counsel

• For Appellant:
  
• Jade R. Lambert, Perkins Coie, John M. Christian, (argued), Phelan, Cahill & Quinlan, Brian M. Graham, Smith Amundsen, LLC, Chicago, IL, for Plaintiffs-Appellants.


• For Appellees:
  
• Alexander D. Kerr, Jr. (argued), Tishler & Wald, Sean M. Sullivan, Daley, Mohan & Groble, Jodi Rosen Wine, Nixon Peabody LLP, Chicago, IL, for Defendants-Appellees.