May 31, 2022, US Bankruptcy Court for the Middle District of North Carolina – ZZ Home Care, LLC (“Debtor”) files an adversary proceeding against American National Bank (“Defendant”) to avoid and recover alleged preferential transfers under §§ 544 and 547 of the Bankruptcy Code.
The Debtor makes following factual allegations in its complaint:
In 2017, the Debtor and Zurilla Properties, LLC took a secured loan of $1,309,000.00 from the Defendant.
In the same year, the Defendant filed four (4) UCC-1s with the North Carolina Secretary of State but failed to timely continue them and each of said UCCs lapsed on February 24, 2022.
On March 4, 2022, the Defendant again filed four (4) UCC-1s with the North Carolina Secretary of State.
The Debtor claims that each of the 2022 UCCs was filed within ninety (90) days of the filing of bankruptcy petition; that each of the 2022 UCC filings constitutes a transfer of an interest in property of the Debtor; that 2022 UCC filings were for or on account of an antecedent debt owed by Debtor to Defendant; and that the Debtor was insolvent at the time each of the 2022 ANB UCCs was filed.
Debtor ZZ Home Care seeks to avoid 2022 UCCs as preference pursuant to 11 U.S.C. § 547(b). Additionally, the Debtor requests a declaration that to the extent the 2022 UCCs are avoidable under 11 U.S.C. § 544 and/or 11 U.S.C. § 547, said transfers are preserved for benefit of the estate pursuant to 11 U.S.C. § 551.
ZZ Home Care, LLC v. American National Bank (In re ZZ Home Care, LLC), AP No. 22-2016, US Bankruptcy Court for the Middle District of North Carolina.