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IN RE CRABTREE

Bankruptcy No. 3-83-01116, Adv. No. 3-84-0324.

49 B.R. 806 (1985)

In re David A. CRABTREE a/k/a West Knoxville Investment Company, Inc., Debtor. D. Broward CRAIG, Trustee, Plaintiff, v. The PUEBLO CORPORATION; Gary F. Long; the Federal Deposit Insurance Corporation; Gregory D. Shanks; Project Development Corporation; and Cain Partnership, Ltd., Defendants, A. Benjamin Strand, Jr., Trustee for Blakley and Bradley Cameron Trust and Brougham Properties Inc. (Successors to Dandridge Investors, Inc.), a Tennessee Corporation; Michael M. Downing; and MMD, Inc., Intervenors.

United States Bankruptcy Court, E.D. Tennessee.

May 20, 1985.

Attorney(s) appearing for the Case

Cadwalader, Wickersham & Taft, Mark C. Ellenberg, Jerome A. Madden, Washington, D.C., Walker & Walker, John A. Walker, Jr., Knoxville, Tenn., for plaintiff.

Waddey & Newport, Wm. Caldwell Hancock, Nashville, Tenn., James A.H. Bell, Knoxville, Tenn., for defendants Pueblo Corp. and Gary F. Long.

Morton, Lewis, King & Krieg, Mary M. Farmer, Knoxville, Tenn., for defendants Federal Deposit Ins. Corp. and Gregory D. Shanks.

A. Benjamin Strand, Jr., Dandridge, Tenn., for intervenor A. Benjamin Strand, Jr., Trustee.

Child, O'Connor & Petty, Charles H. Child, Knoxville, Tenn., for intervenors Michael M. Downing and MMD, Inc.

Ann C. Short, Knoxville, Tenn., for Witness Douglas Beaty.

CLIVE W. BARE, Bankruptcy Judge.

Asserting avoidability pursuant to 11 U.S.C.A. §§ 548 and 550 (1979 & Supp. 1985), the trustee seeks to recover from defendant Pueblo Corporation, a subsequent transferee, a limited partnership interest in Knox Resorts, Ltd., or the value thereof. Pueblo denies liability maintaining it took for value, in good faith, and without knowledge of the voidability of the initial transfer. 11 U.S.C.A. § 550(b)(1) (1979)....

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