Photo courtesy: KVRR
FARGO (KVRR) – An attorney for Jade Presents has filed a complaint in bankruptcy court in North Dakota against a small business financing company formed in New York.
He is seeking the return of $216,000 paid to Unique Funding Solutions, LLC for a merchant cash advance.
The transaction was for a sale of future receivables by Jade Presents in exchange for cash upfront.
But court documents show the sale was made at a time when the company was insolvent and Jade Nielsen received less than reasonably equivalent value.
The agreement was entered into last July for $150,000.
During a span of six and a half months, Nielsen paid back at least $216,000.
His lawyer claims the purchase agreement was misrepresented and didn’t include an interest rate.
Jade Presents filed for Chapter 11 bankruptcy back in June with assets at around $393,000 and liabilities at nearly $2.9 million.
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