Bankruptcy News

We've summarized the latest docket activity and news for publicly traded companies currently operating under U.S. Bankruptcy Court protection.

Bankruptcy/Chapter 11 / Retailing

RadioShack Plan Filed

RadioShack filed with the U.S. Bankruptcy Court a Joint Plan of Liquidation and related Disclosure Statement. Among other changes in these documents, the Disclosure Statement reflects the Company's recent name change to RS Legacy Corporation and modifies the estimated aggregate amount of allowed claims for Classes 1, 2, 3, 4, 5, 6 and 8. The Disclosure Statement also reduces the value of General Wireless's bid, which included a credit bid of claims of certain lenders under the D.I.P. credit agreement, from $165 million to $150 million. The Disclosure Statement adds the following: "Under the Plan, the Contingent Indemnification Claims of the First Out Lenders and the DIP Agent have been or will be satisfied pursuant to the terms of the GW Sale Order and/or other orders of the Court, including the Confirmation Order. The First Out Lenders and the DIP Agent allege that the Contingent Indemnification Claims are in excess of $200 million. The Debtors dispute this assertion. Absent a consensual resolution of this dispute, the Debtors intend to file motion requesting that the Bankruptcy Court estimate the Contingent Indemnification Claims pursuant to section 502(c) of the Bankruptcy Code for plan confirmation purposes, including for purposes of determining plan feasibility. The Debtors will file this motion by a date that will permit the motion to be heard on or before the date of the Confirmation Hearing. The Debtors will also work with the First Out Lenders and the DIP Agent to reach a consensual scheduling order with respect to the estimation of the Contingent Indemnification Claims."

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