Judge Extends LID’s Use Of Cash Collateral

Law360, New York (April 24, 2007, 12:00 AM EDT) -- A federal bankruptcy judge has given New York diamond seller LID Ltd. approval to use part of its spoken-for funds to keep operations afloat while it tries to reorganize under the protection of Chapter 11.

On Friday, U.S. Bankruptcy Judge James Peck gave the beleaguered wholesaler the green light to use the cash that secures its lenders' claims, also known as cash collateral, on an “interim basis,” according to the order.

The judge chose to extend the motion, which was first granted shortly after the company...
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