Cathay wins judge’s OK

A US federal judge has given Cathay United Bank the green light to preserve a freeze on a plot of property owned by Taiwan shipowner Today Makes Tomorrow (TMT).

Bankruptcy Judge Marvin Isgur’s order lifts bankruptcy protection of TMT affiliate New Flagship Investment just enough to allow Cathay to continue legal action to stop further transfers of the Taipei real estate.

The order is the latest wrinkle in the ongoing Houston bankruptcy case involving several affiliates of Nobu Su-led TMT. Cathay is a major secured creditor in the proceedings.

As TradeWinds reported earlier this week, Cathay asked Isgur for permission to move forward with legal action to pursue legal action for potential fraudulent transfer over a $2.71m deal handing it over to a trustee. The bank fears the move was an attempt to benefit TMT insiders by preventing the property from being attached by creditors.

The bank had posted TWD 13.9m ($463,000) in Taiwan to halt further transfers but was facing a looming deadline to preserve the freeze.

As it made the request, TMT lawyer Evan Flaschen, of US law firm Bracewell & Giuliani, questioned why Cathay should be allowed to move forward with fraudulent transfer litigation.

However, the committee of unsecured creditors came out in favour of allowing Cathay to at least prevent further transfers of the property during the bankruptcy case.