FTD Cos. won interim court orders that will allow it to continue operating under bankruptcy protection, but the flower-delivery company faces a battle with large shareholder Nantahala Capital Management over stock trades last week by John Malone’s Liberty Interactive LLC, the WSJ Pro Bankruptcy reported. Near the end of a hearing yesterday in the U.S. Bankruptcy Court in Wilmington, Del., Nantahala lawyer Arthur Steinberg challenged FTD over its attempt to put limits on how much of its stock can change hands. FTD filed for chapter 11 protection on Monday and was in court with a relatively routine agenda, seeking permission to pay suppliers and keep cash flowing to the network of independent florists that make up the backbone of its business. But that was before Steinberg pointed out during the hearing that Liberty had sold off its 36.8 percent stake in FTD to three other investment firms days before FTD filed for bankruptcy. Liberty reported a trio of stock sales agreements in a Securities and Exchange Commission filing. The sales were set to close on Friday, according to the sales contracts.
