Reuters
Credit repair company PGX Holdings Inc was approved for a $12 million bankruptcy loan on Tuesday, which it will use to auction its assets after the U.S. Consumer Financial Protection Bureau successfully challenged its billing practices. U.S. Bankruptcy Judge Craig Goldblatt in Wilmington, Delaware approved the loan, allowing PGX, which operates creditrepair.com, credit.com and Lexington Law, to borrow additional funds from its primary lenders, Blue Torch Finance LLC and Prospect Capital Corp. Blue Torch controls PGX's $243.5 million senior loan, and could end up owning the company if no other buyer emerges. PGX filed for bankruptcy on Monday, citing a recent loss in a court case brought by the CFPB over its billing for credit repair services.