RadioShack seeking extension of cash collateral use through Aug. 29

By Kali Hays

New York, July 9 – RadioShack Corp. asked the U.S. Bankruptcy Court for the District of Delaware to authorize an extension of its cash collateral use through Aug. 29, according to a Wednesday motion.

The company’s current cash collateral period is set to expire on July 25.

Though RadioShack currently has more than $70 million in cash from proceeds of its liquidation process, the company said that the funds are still the subject of “an allocation settlement dispute” with its official committee of unsecured creditors and its secured lender, Salus Capital Partners LLC.

While the dispute is ongoing, RadioShack said it requires use of the cash collateral in order to continue its wind-down process.

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

The company asked that a hearing be scheduled for July 22.

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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