by Terry Brennan
The trustee overseeing the Chapter 11 case of McCann Inc. will sue Manhattan's top legal office for $2 million in alleged fraudulent transfers it collected from the bankrupt construction company's estate, according to his counsel."
"The problem is that the payments came out of McCann's coffers and the DA's office gets to keep a $2 million windfall while the people who deserve it — the debtor's creditors — get screwed," he said. "We're going to fight to get that money back because we believe they're fraudulent transfers that are voidable under Section 548 of the Bankruptcy Code.
McCann filed for Chapter 11 protection with the U.S. Bankruptcy Court for the Southern District of New York in Manhattan on June 25."
"The decision to sue Morgenthau's office is the latest twist in a bizarre Chapter 11 liquidation case that was triggered in April when three disgruntled creditors filed an involuntary liquidation against McCann."
Wow - Interesting article.
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