Creditors Comm Adamson Apparel v. Arnold Simon

OPINION

GILMAN, Circuit Judge:

This case presents an unresolved issue of bankruptcy law. The question is whether a corporate insider who personally guaranteed his corporation’s loan is absolved of any preference liability to which he might otherwise have been subjected, where he had previously waived his indemnification rights against the corporation, he had a bona fide basis for doing so, and he took no subsequent actions to negate the economic impact of that waiver. Bankruptcy courts have split on this issue, and neither party has been able to cite to any district- or appellate-court decision…