Bloomberg reports RadioShack Corp. spent an emergency loan on fees and other payments to favored lenders in what creditors said was a departure from a judge’s orders.
The judge overseeing the bankruptcy approved RadioShack’s borrowing of $10 million on Feb. 10 to allow it to make essential payments. The Bloomberg story says that according to a court filing from a committee of creditors, the company’s budget shows it used $3.2 million for interest and fees to select lenders and almost $8.7 million for fees and retainers to advisers.
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