Majestic Star Casino, LLC v. Barden Development, Inc.

OPINION OF THE COURT

JORDAN, Circuit Judge.

This case arises from a corporate reorganization under Chapter 11 of the Bankruptcy Code, 11 U.S.C. § 101 et seq. (the “Code”), and puts at issue whether a non-debtor company’s decision to abandon its classification as an “S” corporation for federal tax purposes, thus forfeiting the pass-through tax benefits that it and its debtor subsidiary had enjoyed, is void as a post-petition transfer of “property of the bankruptcy estate,” or is avoidable, under §§ 362, 549, and 550 of the Code. This appears to be a question of first impression in the federal…