Dorula v. Holmes (In re Starlight Group, LLC)

MEMORANDUM OPINION

Robert G. Mayer, United States Bankruptcy Judge

The question presented in this case is the relative priority of various unsecured claims, in particular, whether the claims of creditors who loaned money to the debtor in reliance on security agreements that were ineffective to grant liens on real property have priority over the unsecured claims of a creditor who was not an owner of the debtor but who controlled the debt- or and knew that the security agreements were ineffective to grant liens on the debt- or’s real property.1 The court concludes that the unsecured creditors’…