Wood v. Davis (In Re Southeast Community Media, Inc.)

MEMORANDUM

RALPH H. KELLEY, Bankruptcy Judge.

Southeast Community Media, Incorporated, owned and operated radio station WEDG in Soddy, Tennessee. Before its bankruptcy, the debtor sold the radio sta tion to the defendant, Roberta Davis. In his complaint, the trustee alleged that the sale to Mrs. Davis was an avoidable preferential transfer to the extent the consideration was Mrs. Davis’s cancellation of debts. The trustee also alleged that the transfer was fraudulent because made for an inadequate consideration or with intent to hinder, delay, or defraud the corporation’s creditors.

When Mrs.…