In re: Fort Wayne Telsat, Inc.

Federal 7th Circuit Court
Civil Court
Bankruptcy
Citation
Case Number: 
No. 11-2112
Decision Date: 
November 23, 2011
Federal District: 
N.D. Ind., Ft. Wayne Div.
Holding: 
Affirmed
Bankruptcy Ct. did not err in approving $100,000 settlement of Trustee's promissory estoppel claim on behalf of debtor against third-party, arising out of third-party's alleged promise to transfer broadcasting license. While instant creditor asserted that settlement was unreasonable where Trustee's claim was worth $4.1 million, record showed that claim was more likely valued at $600,000, such that instant settlement was reasonable given percentage chance that Trustee would not have prevailed on claim, as well as litigation costs that would have reduced any favorable judgment.