LOS ANGELES, June 28 (UPI) -- A U.S. bankruptcy judge Tuesday granted preliminary approval for the Los Angeles Dodgers to tap a high-interest loan from a hedge fund to make player payroll.
Judge Kevin Gross approved a move by embattled Dodgers owner Frank McCourt to accept a $150 million loan from a fund controlled by J.P. Morgan Bank to finance the team's operations through the remainder of the year.
Attorneys from Major League Baseball, however, objected, saying the league could offer cheaper financing than the 10 percent interest and $4.5 million fee attached to the hedge fund deal.
MLB attorneys also claimed in legal documents McCourt had filed for bankruptcy Monday without the permission of Commissioner Bud Selig or the monitors he put in place to oversee the Dodgers' business operations, MLB.com reported.
The league also asked Gross to determine whether McCourt should be able to retain control of the team during the Chapter 11 process.
