SmartBrief
Confirm favorite deletion?
Bankruptcy Keyed to Bussel, 12th Ed.
Bay Plastics v. BT Commercial Corp.
Citation:
187 B.R. 315 (1995)Facts
Bay Plastics was formed in 1979 by defendants Bob Younger, Abner Smith, and Paul Dodson to manufacture PVC plastic pipe. On October 31, 1988, the selling shareholders sold their stock to Milhous Corporation for $3.5 million in cash plus $1.8 million in deferred payments. Milhous created a subsidiary structure where BPI Acquisition Corp. formally purchased the Bay Plastics stock. The transaction was financed by having Bay Plastics borrow $3.95 million from BT Commercial Corp., secured by essentially all of Bay Plastics’ assets. Of this amount, $3.5 million was directed to the selling shareholders as payment for their stock. The selling shareholders were fully aware of the LBO character of the transaction and had discussed their potential fraudulent transfer exposure with their attorney. Before the LBO, Bay Plastics had assets of $6.7 million, liabilities of $5.6 million, and equity of $1.1 million. After the LBO, the balance sheet showed tangible assets of approximately $7 million and liabilities of approximately $9 million, with a net equity of $250,000 only because of the addition of $2.26 million in goodwill that had not previously appeared on the balance sheets.
Only StudyBuddy Pro offers the complete Case Brief Anatomy*
Access the most important case brief elements for optimal case understanding.
*Case Brief Anatomy includes: Brief Prologue, Complete Case Brief, Brief Epilogue
- The Brief Prologue provides necessary case brief introductory information and includes:
Topic:
Identifies the topic of law and where this case fits within your course outline.Parties:
Identifies the cast of characters involved in the case.Procedural Posture & History:
Shares the case history with how lower courts have ruled on the matter.Case Key Terms, Acts, Doctrines, etc.:
A case specific Legal Term Dictionary.Case Doctrines, Acts, Statutes, Amendments and Treatises:
Identifies and Defines Legal Authority used in this case.
- The Case Brief is the complete case summarized and authored in the traditional Law School I.R.A.C. format. The Pro case brief includes:
Brief Facts:
A Synopsis of the Facts of the case.Rule of Law:
Identifies the Legal Principle the Court used in deciding the case.Facts:
What are the factual circumstances that gave rise to the civil or criminal case? What is the relationship of the Parties that are involved in the case.Issue(s):
Lists the Questions of Law that are raised by the Facts of the case.Holding:
Shares the Court's answer to the legal questions raised in the issue.Concurring / Dissenting Opinions:
Includes valuable concurring or dissenting opinions and their key points.Reasoning and Analysis:
Identifies the chain of argument(s) which led the judges to rule as they did.
- The Brief Prologue closes the case brief with important forward-looking discussion and includes:
Policy:
Identifies the Policy if any that has been established by the case.Court Direction:
Shares where the Court went from here for this case.