Sports Authority’s creditors battled the failing retailer and its lenders to a standstill over bankruptcy financing that critics said offered no funding for a last-ditch effort to save the company, the Wall Street Journal reported today. Bankruptcy Judge Mary Walrath on Tuesday ordered changes to the loan package. If lenders don’t agree to the adjustments, “then I’m prepared to convert the case today,” Judge Walrath said, meaning she would toss Sports Authority out of the relative comfort of chapter 11 bankruptcy and into a chapter 7 liquidation, where a trustee would make the crucial decisions. Lenders are looking over the revised loan deal, which will be taken up again next week at a hearing in the U.S. Bankruptcy Court in Wilmington, Del. Read more.
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