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July 07, 2022, US Bankruptcy Court for New Jersey – John M. McDonnell, the chapter 7 trustee (the “Trustee”) of the estate of Log Storm Security, Inc. (the “Debtor”) sues thirty Defendants to clawback alleged “preferential transfers”.
The Trustee seeks to avoid and recover the transfers made by the Debtor to the Defendants during the two year period and four year period prior to the petition date. The Trustee alleges that these transfers constitute property of the estate pursuant to section 541 of the Bankruptcy Code.
The Trustee also seeks to avoid these transfers as alleged “fraudulent transfers” pursuant to N.J.S.A. §§ 25:2-25 and 25:2-27, made applicable thereto by section 544 of the Bankruptcy Code. In support of his allegation, the Trustee claims that the Debtor was insolvent at the time of these transfers and that the Debtor did not receive reasonably equivalent value for these transfers.
The Defendants in these adversary cases include Enhanced Capital Partners; Citibank, N.A.; American Express; JP Morgan Chase; Deutsche Bank Trust; Schwab; Fortress Merchant Solutions among others. Enhanced Capital Partners faces the biggest claim with the amount of $1,507,000.00.
In re Log Storm Security, Inc. (Case No. 20-12043), US Bankruptcy Court for the District of New Jersey.