Motel Investment Group, Inc. v. Wu (In re Motel Investment Group, Inc.)

MEMORANDUM OPINION AND FINDINGS OF FACT AND CONCLUSIONS OF LAW

ERWIN I. KATZ, Bankruptcy Judge.

Motel Investment Group, Inc. (“Debtor”) is a corporation formed to acquire a motel property (the “Motel”). The Motel was owned and operated by Michael Wu (“Wu”). Wu, together with John Huang, William Lin and Judy Chen, formed the corporate debtor as a vehicle to transfer the property to the new group who would then finance its rehabilitation and conversion into a Best Western Inn. After Debtor acquired the Motel through an oral installment contract (the “Agreement”), and renovations were completed, a…