Citing some large shortfalls in its budgeted sales and cash flow projections in recent weeks, Comvest objected to the retailer’s proposed new $5 million loan from the brother of a principal on the grounds that its security interest wouldn’t be adequately protected and urged the court to reject the new financing “because an organized liquidation of the Debtor’s assets will maximize the value of the Debtor’s estate and result in the best possible recovery for creditors.”

The bankrupt CA-based inner city chain last week asked the court to replace its existing DIP facility from State Bank, which has declared a default ... Log in to view full article.