Musicland's Creditors Sue Banks Over $25M Loan
The eight secured trade creditors, which include Buena Vista Home Entertainment Inc. and Paramount Pictures Corp., claim the banks—Harris N.A. and Wachovia Bank N.A.—participated in a “subterfuge” to disguise the loan as part of a revolving credit facility secured by a senior claim on all of Musicland’s assets at the creditors' expense.
The funds, which were repaid to...
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