Embattled Philadelphia firm Sacks Weston was granted a brief reprieve in its fight with litigation funder Virage Capital at a hearing Wednesday, with U.S. Bankruptcy Judge Patricia Mayer of the Eastern District of Pennsylvania allowing the firm to continue using its operating funds until the next hearing at the end of October.
Mayer agreed with the firm that it could continue to use the approximately $98,000 left in its operating and payroll accounts, finding that the firm’s secured creditors were “adequately protected given the post petition liens on the [firm’s ongoing] cases” despite an objection lodged by Virage, a Texas-based funder currently in a legal dispute with the firm over $14 million owed on a loan.
