Free Lance-Star lender, asset buyer objects to use of cash collateral

By Kali Hays

New York, July 18 – Free Lance-Star Publishing Co.’s pre-bankruptcy lender and purchaser of company assets DSP Acquisition, LLC objected to continued use of cash collateral, according to a July 17 filing with the U.S. Bankruptcy Court for the Eastern District of Virginia.

As previously reported, Free Lance-Star received access to the cash collateral of DSP under a fifth interim order June 20.

DSP said that it is “willing to discuss the continued use of cash collateral through Aug. 27, subject to a budget and other terms acceptable to DSP.”

The requested terms include a consent order on an interim basis and a wind-down budget that DSP considers adequate, according to the objection.

DSP said as the company cannot prove DSP’s interests are protected and consent to use the cash collateral is not being given by the lender, further use of the collateral must be denied unless the demands set forth in the objection are met.

A hearing is set for July 24.

Free Lance-Star, a Fredericksburg, Va.-based publishing, newspaper, radio and communications company, filed bankruptcy on Jan. 23. The Chapter 11 case number is 14-30315.

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