Cadwalader allows sharing content.
Email to a friend or colleague:
From
To
Subject
Email On June 19, 2018, in HH Cincinnati Textile L.P. v. Acres Capital Servicing LLC, the Supreme Court of the State of New York refused to issue a preliminary injunction to prevent the foreclosure sale of the equity interests in two borrowers under Article 9 of the Uniform Commercial Code (“UCC”). HH Cincinnati Textile L.P. and HH KC Mark Twain, L.P. (together, the “Borrowers”) owned and financed redevelopment projects on real property located out of state in Cincinnati and Kansas City. Instead of entering into a mortgage loan secured by real property and entering into a separate mezzanine loan secured by limited partnership interests in the Borrowers, the parties to the litigation entered into a single loan secured by both forms of collateral. Ultimately, the Borrowers failed to repay the loan and Acres Capital Servicing LLC, as agent for DW Commercial Finance, LLC (the “Lender”) sought to conduct a UCC foreclosure sale of the limited partnership inte https://www.cadwalader.com/resources/clients-friends-memos/unclogging-the-equity-of-redemption-without-drano-recent-new-york-state-decision-sheds-light-on-mortgage-loans-additionally-secured-by-equity-pledges