Tag: insider

E.D.N.C.: In re Winslow and In re Joe Denning & Sons Farms- Non-Statutory Insiders

Summary: 11 U.S.C. § 101(31) has a list of third-parties with a statutorily defined relationship with the Debtor, which are called “statutory insiders”.  This definition, however, use the word “includes”, which makes the list non-exclusive, with such being considered “non-statutory insiders.”  (The District Court notes the oddity of the Bankruptcy Code statutorily providing for  non-statutory insiders.)

In the present independent cases, the Debtors had applied to retain Douglas Gurkins as its chief restructuring officer (“CRO”) and also sought to retain Country Boys Auction & Realty to sell assets.  The Bankruptcy Administrator objected on the grounds that Gurkins had previously been the president and principal owner of Country Boys, prior to his sale of that company to his son in 2005.… Read More

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