Publish Date: 
Thursday, December 22, 2016

Main Case: In re: Seal123, Inc (f/k/a Wet Seal); Bankr. Case No. 15-10081 (CSS)
Plaintiff: The Seal123, Inc. Liquidation Trust, By and Through Its Liquidation Trustee

On December 15 through 22, 2016, META Advisors LLC, as the Liquidation Trustee (the “Liquidation Trustee”) of the Seal123, Inc. Liquidation Trust (the “Liquidation Trust”),  filed approximately 70 actions pursuant to Section 547 of title 11 of the United States Code (the “Bankruptcy Code”.) The Seal123, Inc. Liquidation Trust was established pursuant to the Plan and Confirmation Order for the benefit of unsecured creditors under the above-referenced plan. The Liquidation Trustee is authorized, on behalf of the Liquidation Trust, to litigate claims under Chapter 5 of the Bankruptcy Code.

The Debtors filed a voluntary petition for relief under chapter 11 of the Bankruptcy Code on January 15, 2015. On October 30, 2015, the Bankruptcy Court entered an order (Docket No. 1111) confirming the First Amended Joint Plan of Liquidation of Seal123, Inc. and Subsidiary Debtors and Their Official Committee of Unsecured Creditors (Docket No. 969). The Plan became effective on December 31, 2015 (Docket No. 1190).

The statutory deadline to file avoidance actions is on January 15, 2017, meaning additional actions could be filed.

Pachulski Stang Ziehl & Jones LLP, formerly counsel to the Creditors Committee, serves as counsel to the Liquidation Trustee. The Complaints reviewed reflect the standard avoidance action language. The Complaints do not allege claims under Section 548.

Donlin, Recano & Co., Inc. was the claims agent for Seal123, Inc. although the docket is no longer being updated post-confirmation. General case information can be found at: https://www.donlinrecano.com/Clients/wsi/Index.

A list of adversary actions filed as of posting can be viewed here

R. Grant Dick IV

(302) 984-3867

gdick@coochtaylor.com