RadioShack asset sale procedures approved; auction set for March 23

By Caroline Salls

Pittsburgh, March 9 – RadioShack Corp. received court approval of the bid procedures for the proposed sale of some of its assets to General Wireless, Inc., according to a Monday filing with the U.S. Bankruptcy Court for the District of Delaware.

General Wireless’ stalking horse bid includes cash and a credit against credit facility debt owed by RadioShack. The cash amount will be equal to $3,000 multiplied by the number of acquired stores, plus any amount by which the estimated credit bid consideration exceeds the amount of credit facility debt, plus a $500,000 donation items consideration amount, plus a trademark consideration amount.

Bids are due by 5 p.m. ET on March 17. If competing bids are received, the auction will be held on March 23.

A hearing on approval of a $6 million break-up fee and $2 million expense reimbursement to be paid if the stalking horse bidder is not the high bidder for the assets was adjourned to a later date, according to Monday’s order.

The sale hearing is scheduled for March 26.

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

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