Opinion
October 9, 1997
Appeal from Supreme Court, New York County (Edward Lehner, J.).
The IAS Court correctly determined, without a hearing, that the insolvent corporation's transfer to its director and sole shareholder was lacking in good faith ( see, Julien J. Studley, Inc. v. Lefrak, 66 A.D.2d 208, 213-214, affd 48 N.Y.2d 954), and that since the latter was the only other creditor of the former, it would be inequitable, in voiding the transfer, to effect a pro rata distribution. That petitioner is not a secured or judgment creditor is irrelevant under a statute that extends protection against fraudulent transfers to debts not in existence at the time of the transfer ( supra, at 214); moreover, respondents had induced petitioner's forbearance from reducing its debt to judgment or restraining the disputed funds. We have considered respondents' other contentions and find them to be without merit.
Concur — Sullivan, J.P., Rosenberger, Ellerin and Nardelli, JJ.