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

RadioShack Plan Filed

RadioShack filed with the U.S. Bankruptcy Court a First Amended Joint Plan of Liquidation and related Disclosure Statement. Among other changes, the Disclosure Statement amends Class 1-Priority Claims treatment with the following addition: "For the avoidance of doubt, if an Allowed Priority Claim exceeds the amount budgeted for it in the Wind Down Budget, the amount by which such Claim exceeds the budgeted amount shall be paid from the Liquidating Trust Assets other than the Encumbered Cash." The document further amends the estimated aggregate amount of claims for Class 1 from $3 to 6 million to $2 to 10 million. Additionally, the following text is added for Class 3-Salus Capital Partners Secured (SCP) claims: "In full satisfaction of the Allowed SCP Secured Claims, the SCP Agent, on behalf of SCP Secured Parties, shall receive, as soon as practicable after the date of the Dispute Resolution, the Encumbered Cash to the extent authorized by the Dispute Resolution. On the Effective Date, the SCP Secured Parties shall be deemed to waive any SCP Deficiency Claim. On the Effective Date, the SCP Secured Parties shall be deemed to have transferred the Assigned SCP Claims to and for the benefit of holders of General Unsecured Claims. Prior to the Effective Date, the Creditors' Committee shall have the right to file a motion seeking a determination of the amount of the Assigned SCP Claims." Class 3's estimated aggregate amount of claims is $70 million with 80-90% estimated percentage recovery. The Court scheduled a September 16, 2015 combined hearing to consider both the Plan and Disclosure Statement.

Read more Bankruptcy News