By Steven Herman and Audrey Nelson ( August 2, 2018, 3:49 PM EDT) -- On June 19, 2018, in HH Cincinnati Textile LP v. Acres Capital Servicing LLC,[1] 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.[2] HH Cincinnati Textile LP and HH KC Mark Twain LP (together, the borrowers) owned and financed redevelopment projects on real property located out of state in Cincinnati and Kansas City.[3] 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.[4] 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 interests in the borrowers.[5] The borrowers then filed a suit claiming, among other things, that by conducting a UCC foreclosure sale of the limited partnership interests, the lender unlawfully "clogged" the borrowers' equity of redemption.[6]...