Giordano's Ch. 11 Trustee Says Owners Hid $5M From Creditors

Law360, New York (March 6, 2012, 9:17 PM EST) -- The Chapter 11 trustee for bankrupt pizza chain Giordano's Enterprises Inc. sued the sons of the chain's owners Tuesday in Illinois bankruptcy court, saying they improperly purchased two restaurants from their parents in a “sweetheart deal,” depriving the company's creditors of $5 million.

In two adversary proceedings, trustee Philip V. Martino says John and Eva Apostolou, who own 100 percent of GEI's stock, transferred two Giordano's-branded restaurants to their sons, defendants George and Basil Apostolou.

The Apostolous orchestrated the sale of two restaurants to their sons...
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