RadioShack lender Salus Capital drops motion for Chapter 7 conversion

By Mark Reccek

Bethlehem, Pa., Aug. 11 – RadioShack Corp.’s secured lender, Salus Capital Partners LLC, withdrew a motion requesting the court to convert the company’s Chapter 11 bankruptcy case to Chapter 7, according to a motion filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

Salus previously argued that RadioShack’s estate is “likely administratively insolvent” and that after the company has completed its central asset sales it will “have nothing left to achieve in Chapter 11.”

Salus also said allowing RadioShack to remain in Chapter 11 will allow administrative expenses to continue to grow.

RadioShack is a Fort Worth-based technology retailer that filed for bankruptcy on Feb. 5, 2015. Its Chapter 11 case number is 15-10197.

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