C2 Wireless Does Not Hold A Valid “Perfected” Security Interest in Handl New York, Argues Replay Storage Solutions
November 4, 2021, District of Delaware – Plaintiffs Argento S.C. By Sicura Inc. and Replay Storage Solutions, LLC (“RSS”, or collectively “Plaintiffs”) file a complaint against Defendant C2 Wireless & Accessories LLC under Rules 3007 and 7001 of the Federal Rules of Bankruptcy Procedure and sections 105 and 506 of title 11 of the Bankruptcy Code. The Plaintiffs seek to determine the extent, validity, and priority of C2 Wireless’ alleged lien and secured claim against the assets of Debtor Handl New York, LLC and objects to proof of claim number 7-1 filed by C2 Wireless.
The complaint contends that although C2 Wireless claimed a valid prepetition “perfected” security interest in the Debtor’s assets based upon a security agreement, by virtue of a limited liability operating agreement, the Debtor was “unauthorized” to grant C2 Wireless a security interest in its assets. Therefore, the Plaintiffs demand judgment against C2 Wireless, declaring that Defendant does not have a valid, perfected security interest or enforceable secured claim against the Debtor and the Debtor’s estate. Additionally, Plaintiff also urges the Court to grant judgment determining that the lien of RSS “has priority” over all creditors of Debtor including C2 Wireless.
In re Handl New York, LLC, Case Number: 21-10984 (JKS)