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Salus: RadioShack discounting bid; conference requested before hearing
By Caroline Salls
Pittsburgh, March 25 – RadioShack Corp. lender agent Salus Capital Partners, LLC said it and some liquidation agents submitted a bid for the company’s assets that they feel is far superior to Standard General, LP acquisition entity General Wireless, Inc.’s stalking horse bid, including more than $270 million in cash to be provided in the Salus bid, versus $16.4 million in cash to be contributed by Standard General.
According to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware, although both bids are conditioned on the determination of claims raised by Salus in an adversary proceeding filed last week, the company is discounting agents’ bid, but not Standard General’s, based on the conditionality.
The discounted amount has not yet been specified, Salus said.
In addition, Salus said RadioShack has advised it that it believes the Standard General bid is superior, although it has not provided any written analysis to Salus to support this conclusion.
“It is not the debtors’ place to unilaterally, in effect, declare who the prevailing parties are in the formal litigation proceedings pending before this court and impose a discount for these litigation risks on one side in the auction but not the other,” Salus said in the filing.
“Those litigation matters are for the court, not the debtors, to resolve and decide; only when the court has done so can the conditionality in the bids be removed, the relative merits of the competing bids be assesses, and the best bid at the auction be determined.”
Salus is asking the court to hold a status conference in advance of any consideration of the asset sale at the March 26 hearing.
RadioShack is a Fort Worth-based technology retailer that filed for bankruptcy on Feb. 5. Its Chapter 11 case number is 15-10197.
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