Judge Greenlights Musicland’s DIP Financing

Law360, New York (February 22, 2006, 12:00 AM EST) -- In a victory for Musicland, a federal judge has approved the bankrupt entertainment retailer’s financing plans, paving the way for the company to fully use a $75 million debtor in possession loan to fund ongoing operations.

The decision, handed down in U.S. Bankruptcy Court in Manhattan on Tuesday, put an end to a contentious battle that had raged between the company and its creditors over the proposed DIP loan.

The anticipated loan, led by Wachovia NA, hinged on Musicland determining early in the bankruptcy case, initiated...
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