Chapter 11 trustee obtained a default judgment on an avoidance action and assigned the judgment to a third party. Subsequent to the assignment, the defendant successfully set aside the default judgment. The assignee then filed an amended complaint and a motion to substitute as the plaintiff, while the defendant filed a motion to dismiss the amended complaint, and the trustee filed a motion to approve settlement of the adversary proceeding with the defendant. The assignee took the position that it had the ability to substitute as plaintiff because the trustee had assigned the underlying claims to it. The Court concluded that the assignee could not substitute as plaintiff and pursue the claims because even if the trustee had intended to assign those claims, he was legally precluded from doing so. While noting certain limited circumstances in which parties can exercise a trustee’s avoidance powers, the Court held that such circumstances were not present in this case and distinguished them from an outright sale of avoidance claims. The Court then approved the trustee’s settlement of the adversary proceeding.