Nature of the Case
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Facts
Diabetes America, Inc. (P) filed chapter 11 on December 21, 2010. P was incorporated in Delaware but located in Texas. On January 14, 2011, D filed a fully secured proof of claim in the amount of $161,402.39. The claim relates to a promissory note and loan agreement entered into between D and P. In exchange for lending $150,000.00 to P prior to the bankruptcy petition. D received a security interest in all of P's assets. D filed a UCC-1 financing statement only in Texas. Nothing was filed in Delaware. P filed its second amended disclosure statement and second amended liquidation plan on September 1, 2011. The Court approved the second amended disclosure statement. On October 28, 2011, P filed an objection to D's claim. Lovett was granted the authority to prosecute the claim objections. Lovett filed this adversary proceeding on June 27, 2012, objecting to D's claim. Lovett alleges that Ds security interest was an avoidable § 547 preferential transfer to an insider and that D's security interest was not properly perfected. December 5, 2011, the second amended liquidation plan was confirmed. Both parties filed for summary judgment.
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