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Bankruptcy – Settlement Proceeds – Constructive Trust – License Agreement (access required)

A debtor that continued to manufacture toys – Cotton Candy Makers and Hop-Along-Katie dolls – after its licensing agreements with two creditor companies were terminated has a constructive trust imposed in favor of the licensors on certain settlement proceeds held by the bankruptcy trustee, in this decision from a Roanoke U.S. Bankruptcy Court. The creditor, Marra ...

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