General Wireless files plan; last-out lenders to get new interests

By Caroline Salls

Pittsburgh, Aug. 18 – General Wireless Operations Inc., which does business as RadioShack, filed its plan of reorganization and related disclosure statement with the U.S. Bankruptcy Court for the District of Delaware.

Under the plan, holders of priority claims will be paid in full in cash.

Holders of first-out second-lien secured claims will receive a share of a new $23.24 million second-lien secured note, which will bear interest at a rate of Libor plus 1,000 basis points.

Holders of last-out second-lien secured claims will receive 100% of the new interests in the reorganized company and a share of any lender distributions remaining after payment in full of first-out second-lien secured claims.

Holders of other secured claims will either be paid in full in cash or receive the collateral securing their claims.

Holders of general unsecured claims will receive a share of litigation trust interests until they are paid in full.

Holders of existing interests and subordinated claims will receive no distribution.

A hearing on conditional approval of the disclosure statement is scheduled for Sept. 7.

General Wireless is a Fort Worth-based operator of neighborhood electronics convenience stores. The company filed for bankruptcy on March 9. The Chapter 11 case number is 17-10506.

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