Al Owns All the Shares in Star Manufacturing Inc

Al owns all the shares in Star Manufacturing Inc. Star became $800,000 in debt and declared bankruptcy. Al then went to his brother and got a loan for $150,000 and Al then incorporated a new corporation called Nova Manufacturing Inc. Al owns all the shares in Nova. When the trustee in bankruptcy had a sale of all the assets of Star Manufacturing Inc., Al went to the sale on behalf of Nova and bought all the assets of Star for $100,000 (about 10% of their original value) as there were no other bidders on the equipment. Al is now carrying on his same business as before but under the name of Nova Manufacturing. The Star creditors who were owed $800,000 and only got a small percentage of what they were owed and are furious that Al is still in business. This is

A) illegal as since Al owned all the shares in both corporations Nova is liable for Star's debt
B) illegal as it is a fraud on the creditors
C) legal as Star and Nova are separate legal entities and Nova is not liable for Star's debts
D) legal but Star creditors can sue Al personally for the money they are still owed
E) both A and B