RadioShack eyes authorization to use cash collateral through July 4

By Kali Hays

New York, May 27 – RadioShack Corp. is seeking an extension of its cash collateral use through July 4, according to a May 26 motion with the U.S. Bankruptcy Court for the District of Delaware.

The company said that an extension of the cash collateral is needed to wind down its remaining business operations and to perform “under the transition services agreement with General Wireless and sell the remaining assets.”

Though RadioShack said it has yet to reach an agreement on “certain terms” of the extension or “on all aspects of the budget” with its lenders, the parties are “continuing to discuss these issues,” and the company intends to file a full and final stipulation form before a hearing is held.

As previously reported, RadioShack received final approval on March 6 of a $285.33 million debtor-in-possession facility and the use of cash collateral.

A hearing is set for June 3.

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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