Senior Transeastern Lenders v. Official Committee of Unsecured Creditors (In re TOUSA, Inc.), No. 11-11071 (11th Cir. 2012)
Annotate this CaseThis bankruptcy appeal involved a transfer of liens by subsidiaries of TOUSA, Inc., to secure the payment of a debt owed only by their parent, TOUSA. This appeal by the Committee of Unsecured Creditors presented two issues: (1) whether the bankruptcy court clearly erred when it found that the Conveying Subsidiaries did not receive reasonably equivalent value in exchange for the liens to secure loans used to pay a debt owed only by TOUSA; and (2) whether the Transeastern Lenders were entities "for whose benefit" the Conveying Subsidiaries transferred the liens. The court held that the bankruptcy court did not clearly err when it found that the Conveying Subsidiaries did not receive reasonably equivalent value for the liens and that the bankruptcy court correctly ruled that the Transeastern Lenders were entities "for whose benefit" the liens were transferred. The court reversed the judgment of the district court, affirmed the liability findings of the bankruptcy court, and remanded for further proceedings.
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