The applicant sought a declaration that all intellectual property used by the debtor in its business was the property of the debtor and subject to the applicant's security interest.
The debtor's directing mind claimed the trademarks had been assigned to a related company prior to the receivership.
The court found the directing mind lacked credibility, noting the assignments were not disclosed to lenders, were for nominal consideration, and the debtor continued to use and renew the trademarks.
The court declared the trademarks were the property of the debtor and, in the alternative, that the assignments were void as fraudulent conveyances.
A cross-motion by the related company for disgorgement of funds was dismissed.
