A bankruptcy watchdog raised concerns about a potential $2 million loan to off-air golf channel Back9Network Inc., saying the deal could lead to an unfair, noncompetitive sale of the channel’s smartphone app to several investors, the Wall Street Journal reported on Thursday. In court papers, U.S. Trustee William K. Harrington protested the borrowing deal, saying that the fine print of the agreement could give an advantage to the lender over other potential buyers who might want the TV channel’s business. Under the deal, five investors in the channel have proposed to extend a $2 million loan that could later turn into money for a bid on Back9Network’s smartphone app, which has mapped out more than 35,000 golf courses around the world. The app has been downloaded more than three million times and is used for hundreds of thousands of rounds each month, according to documents filed in U.S. Bankruptcy Court in Hartford, Conn. The borrowing proposal still needs approval from Judge Ann M. Nevins.
