Bankr. E.D.N.C.: Angell v. Montague Farms- Evidence of Insolvency and Reasonably Equivalent Value

Summary: As evidence of the insolvency of the Debtor in support of a long-running preference action, the Trustee sought to introduce Affidavits from his paralegal, from the Director of Financial Services of one of the Debtor’s largest creditors, from the Examiner appointed in the case and from himself. The bankruptcy court found that there were numerous foundational and authentification issues with these Affidavits that would need to be addressed and was sufficient to deny the Trustee’s motion for summary judgment as to the Debtor’s insolvency at the time of the transfers in question. Further, based on questions regarding whether the Debtor received any benefit from these transfers, arising from inconsistencies in the deposition testimony of James Winslow, the owner of the Debtor, the court held that there was a genuine issue of material fact with respect to whether the Debtor received less than a reasonably equivalent value. For a copy of the opinion, please see: Angell v. Montague Farms- Evidence of Insolvency and Reasonably Equivalent Value