RadioShack looks to monetize some leases through proposed sale process

By Kali Hays

New York, Feb. 12 – RadioShack Corp. is seeking approval of bid procedures for the sale of some property leases, according to a Feb. 12 motion for the U.S. Bankruptcy Court for the District of Delaware.

Though a minimum bid amount has not been set, the company said that a significant number of its leases “have value that can be monetized through a sale process,” and that “widespread notice has already been given to numerous parties that may have an interest in bidding at the auction.”

RadioShack asked that the bid deadline be set for 12 p.m. ET on Feb. 20 and if one or more qualified bids are received, an auction be held on Feb. 24.

Any bid must be accompanied by a cash deposit equal to $20,000 per lease.

As previously reported, RadioShack entered into a stalking horse agreement for the sale of between 1,500 and 2,400 of its United States retail locations and some related assets to General Wireless Inc. on Feb. 5.

An auction for the retail locations will be held on March 16 if the company receives one or more qualified bids by 4 p.m. ET on March 11.

Under the stalking horse agreement, General Wireless will receive a $6 million breakup fee and expense reimbursement up to $2 million if it is not the prevailing bidder for the assets.

RadioShack is a Fort Worth, Texas technology retailer that filed for bankruptcy on Feb. 5. Its Chapter 11 case number is 15-10197.

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