A plaintiff sought to enjoin a defendant from moving forward with a UCC sale of a “member and equity interest” in an LLC. The dispute involved an office complex in Boston, Massachusetts, owned by a nonparty LLC through its affiliates. There are four loans on the property. There is a mortgage loan for the amount of $535 million and three “subordinate mezzanine loans.”

Although the plaintiff attempted to refinance the loans, it defaulted on the subject loan on November 10, 2021. The following day, the defendant sent a notice pursuant to UCC-Art. 9 for the “sale of collateral, namely the one hundred percent equity interest in defendant corporation pursuant to a Pledge and Security Agreement executed when the defendant purchased the loan” in June 2021. The UCC sale was scheduled for Dec. 20, 2021. A third mezzanine lender also scheduled a UCC foreclosure sale. That sale was scheduled for the next day, Dec. 21, 2021.

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