RadioShack wins support on sale of leases to Spring Communications

By Kali Hays

New York, Feb. 27 – RadioShack Corp. received approval to enter a designation rights agreement with Spring Communications Holding Inc. for the assumption of some real property leases, according to a Feb. 27 order from the U.S. Bankruptcy Court for the District of Delaware.

Spring Communications has until March 31 to select leases to assume from three tranches of RadioShack stores. The consideration for each assumed lease will be $15,000, along with any associated cure costs, and RadioShack is holding a $250,000 deposit in escrow.

As previously reported, the company filed for approval of bid procedures for the sale of the property leases on Feb. 12.

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

An auction for those stores 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 15-1019.

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