Chief Judge Arthur Gonzalez approved a number of Borders’ initial motions at the end of the day on Wednesday, including one that allows the bookseller to access $400 million of their $505 million in debtor-in-possession financing to fund operations. Borders’ attorney David Friedman “said Borders needs the $400 million on an interim basis to cover immediate expenses if it’s to keep operating and reorganize”–which makes you wonder how they are going to fund anything more than bare subsistence. A number of attorneys for creditors objected to portions of the loan agreement–particularly distressed that Borders had not submitted a detailed budget […]
