In Re Tekena USA, LLC

MEMORANDUM OPINION

JACQUELINE P. COX, Bankruptcy Judge.

Systems Division, Inc. (SDI) obtained a judgment of $3,788,609.75 for patent infringement against Teknek, LLC and Tek-nek Electronics (Electronics) in a federal district court in California in 2004. While the lawsuit was pending, Teknek, LLC and Electronics’ sole shareholders, Jonathan Kennett (Kennett) and Sheila Hamilton (Hamilton), created Teknek Holdings (Holdings) and proceeded to funnel both companies’ assets into Holdings, leaving Teknek, LLC and Electronics insolvent. In re Teknek, 563 F.3d 639, 641 (7th Cir. 2009). SDI later…