The business in Chapter 11 has performed thousands of dollars work at no cost, and without billing, on an insiders' property. This has occurred over 3 years, with a majority of the work being done within the year prior to the Chapter 11 filing. The insider is not a creditor. Can the amount spent by the business (materials, labor, permit fees etc) on this work be "clawed back" from the insider?
I think there is a good chance that it can be clawed back, if a trustee gets appointed. If it remains a debtor in possession, I would not expect the debtor to take action on this, unless forced to do so.
