Actrade Liquidation Trust v. Greenwich Insurance (In Re Actrade Financial Technologies, Ltd.)

INTRODUCTION

ALLAN L. GROPPER, Bankruptcy Judge.

Actrade Capital, Inc., one of the above-captioned debtors (“Actrade”), filed for relief under Chapter 11 of the Bankruptcy Code on December 12, 2002, and confirmed a plan of liquidation on January 7, 2004. The largest claim in the Actrade case was filed by the Chapter 7 Trustee (the “Allou Trustee”) of Allou Distributors, Inc. (“Allou”), another debtor then and now in liquidation proceedings in the Eastern District of New York, Case No. 03-8232(ESS). The Allou claim charges that $48 million in payments made by Allou to Actrade were fraudulent…