Reading Westar
Saturday, October 31st, 2009I just came across In re Bakersfield Westar, Inc., 22 B.R. 227 (9th Cir. B.A.P. 1998), a case holding that a conversion from an “S corp” to a “C corp” could be a fraudulent transfer of property under 11 USC 548(a).
Wow!
If the reasoning of the case is followed earnestly, can a debtor in possession or bankruptcy trustee now unwind any number of administrative maneuvers taken by a corporation?
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