09 B 39937, 11 A 02236
Upon the Defendant’s motion to dismiss the Chapter 11 Plan Administrator’s adversary proceeding, seeking to avoid and recover as fraudulent transfers lease payments transferred from the Debtor to the Defendant that purportedly were part of fraudulent scheme, held: (i) the Defendant could not assert res judicata challenge to adequacy of confirmed plan’s reservation clause; (ii) the plan’s reservation clause effectively preserved fraudulent transfer claims asserted pursuant to state law under 11 U.S.C. § 544(b); but (iii) the Plan Administrator failed to adequately allege Ponzi-type scheme and to explain how challenged payments were used to further alleged scheme and harm the Debtor’s other creditors.  Motion to dismiss granted.