October 20, 2021, Western District of Tennessee – Plaintiff Debtor Broadband Properties, LLC brings an action against Defendant Ally Finance Corporation for the avoidance of lien and to seek a temporary restraining order and a temporary injunction enjoining Ally from attempting to vote Plaintiff’s membership interest in Rural Connect, LLC pending resolution of the adversary proceeding.
Specifically, Plaintiff argues that Ally did not hold a perfected security interest in any collateral covered by either an assignment, pledge, and security agreement between the parties as of the Debtor’s petition date. Plaintiff urges the Court to enter a judgment holding that Ally foreclosed on Plaintiff’s membership interest in Rural Connect, LLC and that such foreclosure constituted a transfer of an interest of the Debtor, which is avoidable according to 11 USC § 547. Plaintiff argues that the alleged transfer and any lien created by such transfer is preserved for the benefit of the estate according to 11 USC § 551. Thus, Plaintiff requests the Court to enter a judgment holding that any lien of Defendant on Plaintiff’s membership interest is unenforceable and subordinate to the Debtor’s rights according to 11 USC § 544.