
Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Author: Joel R. Glucksman
Date: April 9, 2015

Partner
201-896-7095 jglucksman@sh-law.comThis decision ended a period of uncertainty started when the troubled retailer filed for Chapter 11 bankruptcy earlier this year, according to The Wall Street Journal.
While many competitors bid on the RadioShack assets, hedge fund Standard General LP, currently one of the retailer’s major lenders, submitted the offer – valued at roughly $160 million – that won the approval of U.S. Judge Brendan Shannon, the media outlet reported. Instead of offering cash consideration, the hedge fund offered to cancel RadioShack loans.
Standard General provided a higher bid than other parties interested in RadioShack, and Judge Shannon stated that the hedge fund was the only bidder to offer the “added and terribly important benefit of saving more than 7,000 jobs and preserving a century-old American retailing icon,” according to the news source.
Under this plan, cellular service provider Sprint Corp will co-brand with RadioShack and take up one-third of the space in each RadioShack store, Reuters reported.
The 1,743 stores that will be left are a far cry from the more than 4,000 outlets that the troubled retailer operated when it declared bankruptcy, but the plan will allow the company to stay in business, a goal that many retailers have a hard time accomplishing if they file for Chapter 11 bankruptcy, according to the news source.
RadioShack secured this agreement in its final hour, as the company maintained that it needed to finalize a deal by April 1 because it lacked the funds to pay the month’s rent, the media outlet reported.
While the company will be salvaged, many of its creditors will receive little or no money as a result of RadioShack selling to Standard General, according to The Wall Street Journal.
“Unfortunately, when it comes to unsecured creditors, there was nothing Standard General could provide from an economic perspective,” a lawyer for the committee representing RadioShack’s unsecured creditors told the news source.
However, Salus Capital, a larger lender, will only receive partial payment from the sale, even though RadioShack owes it $150 million, according to the media outlet. Salus participated in the auction, submitting an offer and then stating over the weekend it would provide another bid which never materialized. Even after failing to provide this new offer, the lender criticized the auction, emphasizing that Standard General won out even though Salus offered $271 million in cash, Reuters reported.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Case law following the 2010 amendments to Federal Rule of Civil Procedure 26 offers guidance on how courts are likely to address whether an expert witness’s AI records are subject to discovery. Key Takeaways Rule 26 Expert Discovery After the 2010 Amendments This article addresses the question courts and lawyers have faced in recent cases: […]
Author: Chris Seelinger

“Show how 3M is 0% at fault.” The absurd tale of how a 350-page ChatGPT history for 3M’s expert witness was produced during a deposition is more likely than you think. It’s an inevitable trend, and an unsettled question for federal courts as experts make generative AI part of their workflow. Key Takeaways Expert Witness […]
Author: Chris Seelinger

Screenshots have changed the risks of electronic communications. The screenshot problem is that messages intended for one person or a small group can be copied, forwarded, preserved, and ultimately presented to opposing counsel, regulators, journalists, customers, or a jury. Businesses should recognize that a truly private digital conversation is increasingly unreliable and ensure their policies, […]
Author: Sean M. Pena

Developers, engineering, procurement, and construction (EPC) contractors, and equipment suppliers each play a critical role in completing a BESS project. However, when equipment costs rise, deliveries are delayed, or regulations change, determining who bears the financial consequences can become contentious. Well-drafted project agreements are essential to sound risk allocation. Key Takeaways This article is Part […]
Author: Nicholas Wall

IP infringement occurs when someone uses your intellectual property without your permission or beyond the scope of the permission you granted. Common examples of IP infringement include copying a product’s patented features or using a trademarked logo in a way that is likely to confuse consumers about the source or affiliation of goods or services. […]
Author: Michael Mietlicki

When facing public allegations of wrongdoing, companies should not let the speed of the public conversation dictate the speed of an investigation. An investigation designed to confirm a preferred narrative rather than establish the facts can create serious problems later, particularly if litigation, regulatory scrutiny, or employment claims follow. Key Takeaways When public allegations surface […]
Author: Sean M. Pena
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!