Kalso Systemet, Inc. v. Jacobs

OPINION

EDWARD WEINFELD, District Judge.

Kalso Systemet, Inc., the debtor-in-possession in a Chapter XI proceeding in the District Court in Massachusetts, pursuant to authorization granted by that Court under an amended Plan of Arrangement, commenced this action against Raymond and Eleanor Jacobs, who were officers, directors and stockholders of the corporation, to void certain transactions as “fraudulent transfers” and “voidable preferences” under the federal bankruptcy laws and New York’s Debtor and Creditor Law and to obtain an accounting. Alleging that the action was instituted with malice…