District Court Reverses Bankruptcy Court’s Controversial Fraudulent Transfer Tousa Decision

United States District Court Judge Alan S. Gold, on February 11, 2011, reversed a Florida bankruptcy court’s controversial October 2009 fraudulent transfer judgment against a group of lenders based on their receipt of a $421 million loan repayment in July 2007. 3V Capital Master Fund, et al., v. Official Committee of Unsecured Creditors of Tousa, Inc., et al, Case No. 10-60017-CIV (S.D. Fla. Feb. 11, 2011). A different District Judge is still considering appeals from another part of the bankruptcy court’s ruling against those lenders who provided the funds for the July 2007 payment.