Court OKs Black Crow Financing Motion
June 1, 2010 at 4:30 AM (PT)
BLACK CROW MEDIA's motion to get authorization for post-petition financing and to use cash collateral has been granted by U.S. Bankruptcy Court Judge PAUL M. GLENN in JACKSONVILLE.
The move had been opposed by GE CAPITAL, which claimed perfected liens and interests in over $1.3 million in open purchase orders (the "cash collateral"), and GE's liens remain in effect, but the court held that the only way for BLACK CROW to get financing to continue in operation was to grant a first priority preferred security interest in the company's cash and accounts receivable and a mortgage.
GE will get $1.88 million in payment of the "undisputed cash collateral," and will be supplied with weekly reports including pacing reports, cash collections and disbursements on a category basis, and unaudited balance sheets.