The Reading (Pa.) Eagle Company's first foray into a courtroom in its chapter 11 protection case was straightforward as a host of first-day motions made by the company were considered, the Reading Eagle reported. The motions, 11 in total, were needed to keep the company operating while a buyer is sought. Perhaps the most important motion to that end was an initial approval of a loan. The company is seeking to borrow $1.5 million from Black Walnut Media LLC, which is a subsidiary of Reading Eagle Company President and CEO Peter D. Barbey's Black Walnut Holdings LLC. The company is already in debt to Black Walnut Media for more than $17 million after it bought debt the company owed to Santander Bank in 2016. Chief Judge Richard E. Fehling of the U.S. Bankruptcy Court in Pennsylvania's Eastern District signed an interim order yesterday, allowing the company to borrow $550,000. That amount was increased from the $250,000 that the company originally asked for on an interim basis because the date set for a hearing on the final order was scheduled for April 9. The $250,000 would not have lasted that long, according to a 13-week budget the company submitted to the court. At the April 9 hearing, the company will ask for permission to borrow the remaining $950,000.
