Next week in bankruptcy, Sports Authority Inc. will ask a bankruptcy judge for final approval of $595 million in bankruptcy financing.
On Tuesday, the big-box athletic retailer will request permission on the loan, which has raised “numerous red flags” with unsecured creditors. The creditors requested more information about the loan last week and formally objected Thursday. Judge Mary Walrath of the U.S. Bankruptcy Court in Wilmington, Del., delayed the hearing to Tuesday to give unsecured creditors more time to sort through the documents.
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Medical bankruptcy is a made up term. It is often used by non-lawyers to describe the primary reasons behind their financial downfall. It is a very real situation but not recognized as a special category of insolvency by the legal system.