Former RadioShack seeks approval of $1.06 million Canon settlement

By Mark Reccek

Bethlehem, Pa., Aug. 24 – RS Legacy Corp., formerly RadioShack Corp., requested approval of a settlement agreement with Canon U.S.A., Inc. and Canon Solutions America, Inc., according to a motion filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

According to the motion, Canon will pay $1.06 million in full and final compromise and settlement of the disputes between the parties and any claim or cause of action.

“The settlement agreement should be approved because it falls well within the range of reasonableness and is fair, reasonable and in the best interests of the debtors’ estates and creditors,” the motion said.

The dispute between the companies arose with respect to the proper amount of monies due from Canon to one or more of the RS Legacy debtors and from one or more of the debtors to Canon on account of various issues pertaining to the business.

RS Legacy said the parties have engaged in numerous discussions related to calculating the amount each side owes the other in connection with the business.

A hearing on the matter is scheduled for Sept. 16.

RadioShack, a retail seller of consumer electronics, goods and services, filed for bankruptcy on Feb. 5. Its Chapter 11 case number is 15-10197.

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