RadioShack Files Bankruptcy Plan After Standard General SaleDawn McCarty
RadioShack Corp. filed a bankruptcy liquidation plan explaining how the remaining assets of the once-iconic consumer-electronics retailer will be distributed.
The plan follows the sale of about 1,700 of the Fort Worth, Texas-based chain’s stores -- as well as the rights to its name -- to Standard General LP. The hedge fund plans to run the locations under a co-branding arrangement with Sprint Corp.
In addition to buying the stores for about $145.5 million, Standard General purchased data on about 67 million customers in a $26.2 million deal for assets including the RadioShack name.
The plan filed Friday in Delaware bankruptcy court doesn’t include specific distribution amounts. General unsecured creditors and other claimholders will get a pro rata share of the assets remaining in a liquidating trust. Some holders may get additional distributions.
Holders of “dark store” claims will receive cash equal to 75 percent of the amount of their claim, unless they agree to less favorable treatment.
Dark stores are locations that RadioShack stopped operating on or after its Feb. 15 bankruptcy filing and whose contracts and unexpired leases were rejected by the company effective during February.
A trust will be formed to liquidate causes of action, resolve disputed claims, sell any remaining assets and property, and make distributions to creditors.
Under the proposed plan, gift-card holders get 60 days from the effective date of the plan to file claims.
A June 16 hearing has been set for approval of the sale of property in Hagerstown, Maryland, for $11.4 million and properties in Fort Worth and Woodland, California, for $39.3 million.
A hearing to seek approval of the disclosure statement, which explains the plan to creditors, is set for June 25 in Delaware bankruptcy court.
The case is In re RadioShack Corp., 15-bk-10197, U.S. Bankruptcy Court, District of Delaware (Wilmington).
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