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Active Wear, Inc. v. ML Industries, Inc. (In re Active Wear, Inc.) (Case No. 04-01780; A.P. No. 04-00055) 06/07/2005

The court approved a proposed settlement regarding accounts receivable owed to the Debtor after determining that the settlement was in the best interest of the creditors and that it fell well above the bottom range of outcomes that would be considered reasonable.  However, the release provided to an insider of both parties for guaranteeing the payment was conditioned on the Debtor actually being paid in accordance with the settlement terms.

Date: 
Tuesday, June 7, 2005
Category: 
Adversary Proceedings
Best Interests
Property of the Estate
Chapter: 
11