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Krusty owned the Krusty’s Kookies Kompany. He was the sole director, officer, and shareholder, controlling the company and making all major decisions. During the coronavirus pandemic, cookie sales dropped dramatically. Krusty’s Kookies found itself in financial difficulty and was placed in receivership. Krusty had personally guaranteed substantial debts of the company and was unable to respond to demands for payment. He was forced into bankruptcy and eventually applied for discharge. The trustee and the creditors opposed his application based on his conduct: Krusty had disposed of a manufacturing facility belonging to the company. He had given a security interest for $60 000 on an airplane and transferred ownership to Bozo, his father. He had failed to cooperate with the trustee by refusing to disclose particulars of bank accounts and insurance policies. Krusty made an assignment in bankruptcy, and is now seeking a discharge of bankruptcy. His creditors oppose the discharge.

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Parties Krusty trustees creditors Issue Krusty gave a guarantee for substantial debt of the company which they faced during coronavirus Krusty dispose... View the full answer