American Insulator Co. v. Marsh Plastics, Inc. (In Re American Insulator Co.)

OPINION

EMIL F. GOLDHABER, Chief Judge:

In a preference action under 11 U.S.C. § 547(b) of the Bankruptcy Code (“the Code”), the primary question for decision in the instant case in proving the debtor’s insolvency is whether the debtor’s assets should be attributed the value accorded them in the debtor’s balance sheet or rather the value reflected in recent appraisals of the assets. For the reasons stated herein, we conclude that under § 547(b)(3) insolvency is better gauged by the appraisal value of the debtor’s assets rather than by the debtor’s self-serving balance sheet value of those…