Ocean Sushi Trustee Files Complaint for Turnover of Property
September 10, 2021, Western District of Washington – Trustee Edmund J. Wood for the bankruptcy estate of Ocean Sushi, Inc., brings an action for turnover of estate property and to avoid “fraudulent transfers” made by Ocean Sushi to Defendant The Rain Café, LLC and its members.
Debtor operated a Sushi buffet restaurant in Federal Way, Washington. The complaint alleges that the Debtor was unable to pay its debts as they came due and had outstanding tax obligations owed to IRS. As claimed by the Trustee in the complaint, the Debtor’s schedules “did not disclose” any account receivable owed to it by Defendants and the Debtor still made certain transfers to the Defendants. The Trustee asserts that the Debtor “did not receive reasonably equivalent value” in exchange for the said transfers.
Specifically, the Trustee contends that the Debtor was aware that it owed no funds to Defendant and knew that paying Defendant would hinder, delay or impair its ability to pay obligations owed to its legitimate creditors, such as the $838,000.00 owed to the IRS. Accordingly, the Trustee urges the Court to determine that the property of the estate in the possession or control of the Defendant must be turned over to the Trustee and that the alleged fraudulent transfers should be avoided pursuant to Sections 542, 544(b), 548, 550(a) of the Bankruptcy Code.