Sea Hawk Seafoods v. State of Alaska
Opinion
Opinion
FACTS
Appellant Sea Hawk Seafoods, Inc., (“Sea Hawk”) owns a seafood processing plant in Valdez, Alaska. In April 1995, Sea Hawk brought suit in the Alaska Superior Court against Valdez Fisheries Development Association (“VFDA”) for breach of contract arising out of a failed agreement to sell its processing plant. In August 1997, the Superior Court entered judgment for Sea Hawk against VFDA for over $2 million. Alaska’s Division of Investments then called VFDA’s loans aggregating in excess of $7 million. In response, VFDA deliv-
IN RE VALDEZ FISHERIES DEVELOPMENT ASSOC. 1923
ered to the State approximately $1.65 million in cash and over $400,000 in accounts receivable.
Sea Hawk then filed a petition in the Superior Court nam- ing the State of Alaska as a party and challenging the transac- tions between VFDA and the State as void under state fraudulent conveyance law. The court did not rule on the peti- tion. After the Alaska Supreme Court denied VFDA’s request for a stay of the judgment against it, VFDA filed for Chapter 11 protection and filed a Notice of Automatic Stay. Sea Hawk’s motion for relief from the automatic stay was denied.