Ex-Waffle House Parent Can't Get Back Dividend: 11th Circ.

Law360, New York (May 6, 2013, 7:06 PM EDT) -- The Eleventh Circuit on Monday affirmed a lower court ruling that Northlake Foods Inc., a bankrupt company that owned 150 Waffle House restaurants, can't recover a dividend it paid to a shareholder because Northlake received a reasonable exchange under its shareholder agreement.

Northlake's trustee, David Crumpton, said the company's $94,000 payment was a fraudulent transfer because the payout wasn't a reasonable exchange. But the 11th Circuit sided with a district court ruling that the payment was fair because Northlake was reimbursing a shareholder who'd agreed to...
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