In re Holmes (02-52793, Adv. No. 02-05133)
The chapter 11 debtor purchased real estate from the creditor. The creditor received cash and some shares of stock that the debtor owned in WorldCom, Inc. The debtor signed a written guarantee secured by a deed to secure debt that the stock would double in value within three years. The stock failed to double in value and the debtor was unable to perform under his guarantee. The debtor urged the Court to set aside as fraudulent conveyances the written guarantee and the deed to secure debt. The Court concluded that the sale was an arms length transaction and that the debtor was not insolvent at the time of the sale. The Court held that the transfer was not a fraudulent conveyance.
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Date:
Friday, August 8, 2003