Fort Worth, Texas — As it awaits its fate in a federal bankruptcy court, RadioShack will continue funding operations under Chapter 11 protection with about $285 million in debtor-in-possession financing (DIP).
The package, which includes up to $20 million in incremental borrowing capacity, was provided by the chain’s current asset-based lender group led by DW Partners.
RadioShack filed first-day motions with the Delaware court to allow it to pay employees and continue to conduct business.
Vendors are expected to be paid in full under normal terms for invoices for goods and services provided on or after today. Vendors that have not received payment for goods or services provided before Feb. 6 will need to submit a proof of claim. The company has set up a FAQ page for vendors with links to its claims agent’s site and other important contact information.
In its bankruptcy filing, RadioShack reported $1.2 billion in assets and $1.39 billion in liabilities. Top 10 creditors include Sprint, owed approximately $6 million; Assurant, owed $4.1 million; Verizon Wireless, owed $2.9 million; Federal Express, owed $1.5 million; and MagicJack, owed $1.3 million.
The company had sales of $3.4 billion in 2013, the last full year it reported.