Bankrupt Applebee’s Franchisee Sues Lender Over Liens on Leases

A bankrupt Atlanta-based operator of 53 Applebee’s franchises sued Equity Bank to avoid the lender’s collateral liens on personal property assets, saying the bank perfected its security interests while the company was insolvent.

Equity Bank filed UCC-1 financing statements to perfect security interests in assets held by Neighborhood Restaurant Partners Florida LLC just 35 days before the casual dining chain franchisee filed for Chapter 11, putting the transaction squarely in line to be unwound, the company said in a Wednesday complaint in the US Bankruptcy Court for the Northern District of Georgia.

Equity Bank has served as administrative agent and ...