In Industrial Enterprises of America Inc. v. Burtis ( In re Pitt Penn Holding Co. Inc. ), the U.S. Bankruptcy Court for the District of Delaware was faced with an issue of apparent first impression in the 3rd Circuit: whether the two year look-back period set forth in § 548 of the Bankruptcy Code is subject to equitable tolling. The court held that it was not.
In the Burtis adversary proceeding, the debtors sought to recover certain transfers made to, among others, Matthew and Susan Collyer, pursuant to § 548 of the Bankruptcy Code. Specifically, it was alleged that certain of the debtors’ former principals had engaged in a scheme to defraud the debtors and the debtors’ creditors and that, pursuant to that scheme, the Collyers had improperly received freely tradable stock in certain of the debtors. Consequently, the debtors alleged that they were entitled to recover the value of the stock allegedly transferred to and received by the Collyers.
