1756 W. Lake Street LLC v. American Chartered Bank

Dist. Ct. did not err in granting defendant-bank’s motion for summary judgment in adversary action brought by plaintiff-debtor in Chapter 11 proceeding, seeking to set aside transfer of deed to plaintiff’s property after plaintiff had defaulted on $1.5 million loan, where said transfer occurred pursuant to agreement by defendant to forebear foreclosing on said property, and where, according to plaintiff, property was worth $200,000 more than loan balance. While plaintiff argued that it was entitled to set aside transfer of deed because it received less than equivalent value for said property when defendant merely forgave loan in exchange for transfer of deed, record showed that plaintiff had already received any alleged $200,000 difference in form of eleven prior forbearances that defendant had granted to plaintiff after plaintiff’s defaults on loan, as well as, among other thing, repeated extensions of loan maturity dates, which enabled plaintiff to remain in business and obtain gross income that was greater than $400,000.