INTRODUCTION ......................................................................................................................... 1
I. JURISDICTION .................................................................................................................... 3
II. BACKGROUND .................................................................................................................... 3 A. Moyes' Business Interests ................................................................................................... 3
B. Moyes Enters the Air Transportation Business .................................................................. 4
C. The Business of Moyes' Affiliates and Amounts They Owed Swift at the Transaction Date ............................................................................................................................................. 5
1. Moyes Trust .................................................................................................................... 5
2. Swift ................................................................................................................................ 6
3. SAVM ............................................................................................................................. 6
4. SME ................................................................................................................................ 7
5. Transjet and Transjet Subsidiaries .................................................................................. 7
6. Services ........................................................................................................................... 8
7. Sales ................................................................................................................................ 9
8. SAM ................................................................................................................................ 9
9. SAG ................................................................................................................................. 9
10. Transpay .................................................................................................................... 10
11. Risk ........................................................................................................................... 10
12. Redeye and Briad ...................................................................................................... 10
13. Legacy ....................................................................................................................... 12
D. Summary of Debts Owed to Swift by It's Affiliates at the Transaction Date .................. 12
E. Debts Owed by Swift to Affiliates at the Transaction Date .............................................. 12
1. Moyes ............................................................................................................................ 13
2. Services ......................................................................................................................... 13
3. Sales .............................................................................................................................. 13
4. Transjet and Transjet Subsidiaries ................................................................................ 14
F. Summary of Debts Owed by Swift to Its Affiliates at the Transaction Date .................... 15
III. THE TRANSACTION ........................................................................................................ 15 A. Lead Up to the Transaction ............................................................................................... 15
B. The LOI ............................................................................................................................. 17
C. Ehrlich's Role in the Transaction ..................................................................................... 18
D. Ehrlich's Red Flag Email .................................................................................................. 20
E. Swift's Financial Statements Just Before the Transaction ................................................ 23
F. Summary of the Transaction ............................................................................................. 24
G. Transaction Documents .................................................................................................... 28
H. The Legacy Transaction .................................................................................................... 33
IV. NEW SWIFT AFTER THE TRANSACTION BUT BEFORE THE BANKRUPTCY 33
V. SWIFT'S BANKRUPTCY .................................................................................................. 35 A. Executory Contracts .......................................................................................................... 36
B. Post-Petition Financing ..................................................................................................... 38
C. Saipan Air ......................................................................................................................... 40
D. Bankruptcy Claims Filed by Moyes' Affiliates and Others ............................................. 41
E. Motion Seeking Conversion to Chapter 7 ......................................................................... 42
F. Confirmation of Plan of Reorganization ........................................................................... 43
VI. THE ADVERSARY PROCEEDING ................................................................................. 44
A. Procedural History ............................................................................................................ 44
1. The Complaint and Dismissal of Causes of Action ...................................................... 44
2. Denial of Motion for Leave to File Fourth Amended Complaint ................................. 46
3. Discovery Disputes ....................................................................................................... 46
4. Motions for Summary Judgment .................................................................................. 48
5. Bankruptcy Court Jurisdiction and/or Authority .......................................................... 50
6. Motions in Limine ......................................................................................................... 51
B. The Trial ............................................................................................................................ 53
1. Plaintiff's Witnesses ..................................................................................................... 53
a. Spindler ..................................................................................................................... 53
b. Moyes ........................................................................................................................ 53
c. Burdette ..................................................................................................................... 54
d. Huska ........................................................................................................................ 55
e. Forry .......................................................................................................................... 58
f. Cahill ......................................................................................................................... 59
2. Defendants' Witnesses .................................................................................................. 59
a. Conry ......................................................................................................................... 60
b. Huska ........................................................................................................................ 64
c. Penrod ....................................................................................................................... 66
d. Burdette ..................................................................................................................... 66
e. Moyes ........................................................................................................................ 70
f. Ehrlich ....................................................................................................................... 71
g. Lyon .......................................................................................................................... 743. Trial Exhibits ................................................................................................................ 75
C. Post-Trial ........................................................................................................................... 75
VII. ANALYSIS OF TRUSTEE'S CAUSES OF ACTION ..................................................... 76 A. Preferential Transfers...
