Wilmington, Del. — The federal bankruptcy court here has given RadioShack the go-ahead to borrow $10 million to help fund operations until its stores can be auctioned off later this month.
The emergency financing also includes up to $15 million in letters of credit.
The CE chain, which filed for Chapter 11 reorganization last week, is looking to sell upward of 2,400 of its 4,100 stores to majority shareholder Standard General, which would convert most of the locations into Sprint-branded shops.
But the prepackaged plan is not a done deal, and the stores could be sold to a higher bidder.
The court will consider procedures for the auction process at a hearing on Feb. 20.
The chain’s remaining 2,100 least-attractive locations are being liquidated in three phases, with the majority expected to close by month’s end.
Follow TWICE.com for continuing coverage of RadioShack’s reorganization.