Solution Trust v. 2100 Grand LLC (In re AWTR Liquidation Inc.)

OPINION ON DIRECTORS’ AND OFFICERS’ DUTIES UPON INSOLVENCY, AND RELATED ISSUES

Neil W. Bason, United States Bankruptcy Judge

I. INTRODUCTION1

The individual defendants were all directors of the debtor corporation, then known as Rhythm & Hues, Inc. (“Debt- or”), before it filed its bankruptcy petition on February 13,2013 (the “Petition Date”). Some defendants also served as Debtor’s officers. The plaintiff, which is the liquidating trustee under Debtor’s confirmed chapter 11 plan, alleges that while Debtor was insolvent these defendants (the “Directors”) diverted its assets to themselves, or…