Pearson Bros. v. Pearson (In re Pearson Bros.)

OPINION AND ORDER

WILLIAM V. ALTENBERGER, Bankruptcy Judge.

The debtor is engaged in the business of manufacturing farm equipment. The defendant founded the debtor and prior to its reorganization was its only shareholder, its chief executive officer, and one of its directors. Also prior to its reorganization, the defendant’s brother, Vernon Pearson (Vernon), had retired from the debtor and was working part time in exchange for expenses, and LaVerne Charlet (Charlet), a long time key employee, was still working for the debtor. In November of 1983 the debtor had incurred substantial debt, much of…