Investors In Bankrupt Hotel Co. Ordered To Return $2.4M
By Vince Sullivan (September 15, 2021, 3:24 PM EDT) -- Two investors of bankrupt hotel owner Eagle Hospitality Group must return $2.4 million to the debtor after a Delaware judge said the investors obtained the money through a fraudulent transfer of assets from the debtor after improperly applying for a loan under the federal Paycheck Protection Program.
U.S. Bankruptcy Judge Christopher S. Sontchi granted Eagle's motion for summary judgment Tuesday in a Chapter 11 adversary proceeding against investors Taylor Woods and Howard Wu, saying there were no material facts in dispute surrounding the allegations that the investors engaged in a fraudulent transfer, fraud and unjust enrichment.
The complaint stems from an...
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