UPI’s bankruptcy funding has been extended.
U.S. Bankruptcy Judge George Bason agreed to allow the wire service to continue receiving a $4-million line of credit from Los Angeles-based Foothill Capital Corp. while United Press International tries to reorganize. UPI is operating under Chapter 11 of the U.S. Bankruptcy Code. As part of the agreement, Foothill gets priority over all other creditors in the event that UPI eventually is liquidated. UPI claimed that it probably wouldn’t survive without Foothill’s loans and that it couldn’t obtain financing elsewhere.