Monday, June 15, 2015

RadioShack Files Plan of Liquidation


Class 9 Interests (Stock Interests in RadioShack) are impaired. On the Effective Date, all outstanding Stock Interests of RadioShack will be cancelled. Upon such cancellation, no property will be distributed to, or retained by, holders of such Stock Interests of RadioShack. [...]

On the Effective Date, all Causes of Action will be transferred from the Liquidating Debtors to the Liquidating Trust. Any recovery of Cash by the Liquidating Trustee on account of such Causes of Action will be distributed pursuant to the terms of the Plan and the Liquidating Trust Agreement. [...]

A. Conditions to Confirmation
The following shall be conditions to Confirmation unless such conditions shall have been duly waived pursuant to Section XI.C.:
1. The Confirmation Order shall have been entered by the Bankruptcy Court and shall be reasonably acceptable in form and substance to the Debtors.
2. The Plan will not have been materially amended, altered or modified from the Plan as Filed on June 12, 2015 except as permitted by Section XI.C.
3. All Plan Exhibits are in form and substance reasonably satisfactory to the Debtors.

B. Conditions to the Effective Date
The Effective Date shall not occur and the Plan shall not be consummated unless and until each of the following conditions has been satisfied or duly waived pursuant to Section VIII.C.:
1. The Bankruptcy Court shall have entered an order (contemplated to be part of the Confirmation Order) in form and substance reasonably acceptable to the Debtors approving and authorizing the Debtors and the Liquidating Trustee to take all actions necessary or appropriate to effectuate, implement and consummate the Plan, including the execution, delivery and performance of contracts, instruments, releases and other agreements or documents created in connection with the Plan.
2. The Confirmation Order has become a Final Order.
3. The Liquidating Trust Agreement has been executed and the Liquidating Trust has been established.


Anonymous said...

Do you think there will there be any recovery to the bonds? Currently trading at 1.5cents on the dollar. Thanks.

Anonymous said...

Well, Salus is senior to the bonds and they think they are impaired, so go figure. But the company hasn't published recovery estimates yet.

Anonymous said...

I am almost certain there will be zero recovery for unsecured creditors.

CP, when do you think the Effective Date will be confirmed?