The court in Wilmington, Delaware, that is administering DirecTV Latin America?s Chapter 11 bankruptcy has authorized disbursement of a $300 million loan from Hughes Electronics to DLA as part of its reorganization. The decision was announced on June 3. The judge said he decided to authorize the loan because DLA needs capital to keep operating and has virtually no access to credit because of the bankruptcy.
The court had previously ruled that only $30m could be disbursed. The use to which funds can be put will require separate approval by the court.