Adrienne Woods | Bloomberg LawIn re Southeast Waffles, LLC, No. 11-8012, 2011 BL 302256 (B.A.P. 6th Cir. Nov. 30, 2011) The United States Bankruptcy Appellate Panel for the Sixth Circuit (the "BAP") affirmed the bankruptcy court's ruling dismissing a complaint seeking to avoid non-compensatory penalty payments made to the Internal Revenue Service (the "IRS") as fraudulent transfers pursuant to Federal Rule of Civil Procedure12(b)(6) for failure to state a claim upon which relief could be granted. In so ruling, the BAP rejected the debtor's contention that it did not receive reasonably equivalent value in exchange for the transfers.
Debtor's Penalty Payments and the Fraudulent Transfer Complaint
The Penalty Payment Provided Equivalent Value to Debtor
The Bankruptcy Appellate Panel Affirms the Bankruptcy Court's Holding
To view additional stories from Bloomberg Law® request a demo now