Wilmington, Del. – A federal bankruptcy court judge is continuing to hear arguments from all sides following this week’s auction of 1,740 core RadioShack stores.
At stake is the future of the iconic 94-year-old CE chain.
RadioShack chose Standard General as the winning bidder in the private auction, which began Monday and concluded early Thursday morning. But top creditor Salus Capital Partners is contesting the hedge fund’s $160 million base offer, which largely consists of debt forgiveness.
According to published reports, Salus argued that its own $271 million cash bid, made in concert with three liquidators, was materially superior to Standard General’s, which it described in court as “a sham.”
But the difference between the two bids goes beyond the $111 million disparity. Standard General, which has also received the support of RadioShack’s unsecured creditors and Salus’ own term-lending partner Cerberus Capital Management, is looking to make a go of the business in a prepackaged deal with Sprint, while Salus will most likely shutter it.
The hearings, under Judge Brendan Shannon, resumed here this morning.