RadioShack files plan of liquidation; liquidating trust to be created

By Caroline Salls

Pittsburgh, June 15 – RadioShack Corp. filed its plan of liquidation on June 12 with the U.S. Bankruptcy Court for the District of Delaware.

A liquidating trust will be established under the plan. Trust assets will include causes of action, reserve funds and liquidating RadioShack stock.

Treatment of creditors will include the following:

• Administrative claims, priority claims and priority tax claims will be paid in full in cash;

• Debtor-in-possession facility claims have been or will be satisfied under the company’s General Wireless Inc. and Sprint Solutions, Inc. sale order;

• Secured claims will either be paid in full in cash or holders will receive the collateral securing the claims;

• Internal Revenue Service claims will be treated either in accordance with an agreement with the claimant or a bankruptcy court order;

• Holders of dark store claims will recover 75% in cash;

• Holders of Salus Capital Partners lenders deficiency claims and 2019 notes claims will receive a share of remaining liquidating trust assets plus potential additional distributions;

• Holders of general unsecured claims will receive a share of remaining liquidating trust assets;

• Intercompany claims and interests in RadioShack will be cancelled, and holders will receive no distribution; and

• Interests in other debtors will remain outstanding and will be cancelled when the existence of each other debtor is terminated. Upon such cancellation, holders will receive no distribution.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.