January 18, 2022, Central District of California – Plaintiff-Debtor Collab9, LLC commences legal action against Defendants Dinco, Inc. and its chairman, Attiazaz M. Din (who is also the director of Debtor) for avoidance and recovery of alleged transfers and for disallowance of claims under Section 544 of the Bankruptcy Code and California state law. Collab9 also seeks a declaratory judgment and determination regarding the ownership of lawsuits based on the transferred property.
The complaint alleges that the Debtor and Defendants had executed an assignment agreement under which Collab9 transferred assets worth $16,804,607 to Dinco. The complaint further asserts that Dinco also assumed Debtor’s liabilities amounting to $7,430,283 under the assignment agreement. In the complaint, Collab9 argues that it did not allegedly receive reasonably equivalent value for the transfer of the assets to Dinco and Dinco’s assumption of the assumed liabilities under the agreement. Collab9 explicitly claims that the value of the assets transferred by the Debtor to Dinco substantially exceeds the value of the liabilities assumed by Dinco under the assignment agreement.
Accordingly, Collab9 seeks order and judgment in favor of the Debtor’s bankruptcy estate and against Defendants for $16M and if the Court determines that the assumed liabilities provided value to the Debtor, then for the amount in excess of the value provided to the Debtor by the assumed liabilities, i.e., for $9,374,324 in addition, Collab9 seeks a declaratory judgment regarding the ownership of lawsuits that the Defendants contend they own under the assignment agreement. Further, the complaint also seeks to disallow Dinco’s claim of $1,250,000 against the Debtor pursuant to Section 502(d) of the Bankruptcy Code.
In re Collab9, LLC, A.P. No. 2:22-ap-01023-ER