- 3 -his knowledge, information and belief.8.
In their Statements and Schedules, the Debtors declared that: (a) they had notmade any transfers to any insider creditors within the one-year period preceding the PetitionDate; and (b) they had not made any transfers outside the ordinary course of business within thetwo year period preceding the Petition Date.9.
On the evening of November 8, 2011
more than a month after thecommencement of these cases and on the eve of the day that the Debtors were scheduled totestify at the First Meeting of Creditors
the Debtors revealed for the first time that during thiscalendar year alone, they had made pre-petition transfers (for a single bank account) totaling inexcess of $800,000
to the Debtors’ non
-debtor insiders. These insider transfers included thefollowing amounts: (a) $204,400 to SMR Tower Investments LLC; (b) $58,000 to Roberts HotelCWE LLC; (c) $47,470 to Roberts Communications Properties LLC; (d) $39,188 to RobertsHotel CWE Management LLC; (e) $19,600 to Roberts Hotel Management Jackson; (f) $17,200to Roberts Orpheum Theatre LLC; (g) $17,000 to Roberts Hotel Group LLC; and (h) $13,254 toRoberts Restaurants LLC.10.
As the Debtors’ Vice President of Operations, Bobby Tate (“Mr. Tate”),
subsequently testified at the First Meeting of Creditors, the foregoing transfers were made by theDebtors to their non-debtor insiders for no consideration so as to enable such insiders to covertheir payroll and other necessary operating expenses, as they were (and, presumably, remain)unable to pay such items from their own income and assets.11.
As Mr. Tate further testified at the First Meeting of Creditors, the Debtors’
practice of making gratuitous transfers to
insiders had been occurring over a significantperiod of time. Accordingly, it appears evident that the potential universe of voidable insider