Unsecured creditors of the bankrupt retailer Sports Authority are seeking to convert the case to a quick liquidation, saying that the company should not waste its dwindling funds preparing a plan to end its chapter 11, Reuters reported on Friday. The case has been mired in a protracted fight between lenders and suppliers over the use of the company's cash, and the chain ended up running going-out-of-business sales. The largest U.S. sporting goods retailer, Dick's Sporting Goods Inc., acquired the Sports Authority name and other intellectual property at a June auction. The unsecured creditors argued that the company is "administratively insolvent.” To allow Sports Authority to remain in chapter 11 and spend money preparing the required bankruptcy exit plan would make creditors worse off, according the unsecured creditors. In the filing, the creditors also said that Sports Authority is unfairly prioritizing some administrative costs of the case over others. The creditors said $23 million has been set aside for lawyers and advisers and $2.85 million for bonuses for executives, yet landlords and suppliers are still waiting for their administrative payments.
