Spandex Maker Can Recoup Payout: 11th Circ.

Law360, New York (May 12, 2009, 12:00 AM EDT) -- In an adversary proceeding against bankrupt spandex maker Globe Manufacturing Corp., a federal appeals court has affirmed the litigation trustee’s right to recoup hundreds of thousands of dollars paid out to Carrier Corp. just before the company's Chapter 11 filing.

Judges Stanley Marcus, R. Lanier Anderson and Richard D. Cudahy of the U.S. Court of Appeals for the Eleventh Circuit ruled Monday that more than $615,000 Carrier received weeks prior to Globe's Chapter 11 filing in January 2001 belong to the estate and ultimately the secured...
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