Gantz v. Kovatch Corp. (In Re Wicaco MacHine Co.)

OPINION

EMIL F. GOLDHABER, Chief Judge:

The primary issue at the heart of this controversy is whether a prepetition sale of a part of the debtor’s assets constitutes a bulk transfer, thus enabling the trustee to demand the return of the property or its value even though the purchaser paid fair consideration. For the reasons expressed herein, we conclude that this sale qualifies as a bulk transfer and therefore the fair consideration paid by the purchaser will not prevent the trustee from avoiding the sale and demanding the return of the property.

The facts of this dispute are as follows: 1 The…