In the Matter of International Supply Co.

In a bankruptcy matter, the appellant-lender argued a district court order affirming the findings of the bankruptcy judge regarding insolvency should be reversed by arguing that the balance-sheet test was the sole legally permissible approach to defining solvency. The Seventh Circuit affirmed, finding that the lender’s argument on appeal was inconsistent with Illinois’ adoption of the Uniform Fraudulent Transfer Act, which allows for multiple ways in which a business can be insolvent, and that the lender had forfeited the argument by raising it for the first time on appeal. (JACKSON-AKIWUMI and LEE, concurring)