The court held that a loan made by the Debtor corporation to its sole shareholder for the purpose of acquiring another corporation, which was merged into the Debtor, was a personal loan. The sole shareholder also owed pre-judgment interest on the amount owed to the Debtor from the time the Debtor became insolvent. The sole shareholder could, however, setoff his right to reimbursement for partial payment on a debt he guaranteed for the Debtor.
File:
Judge:
Date:
Thursday, February 16, 2006
Category:
Adversary Proceedings
Interest
Property of the Estate
Chapter:
7