A RadioShack Corporation (OTCMKTS:RSHCQ) lender urged a U.S. Bankruptcy Court judge to get involved in the auction process of the company. The lender had submitted a proposal to liquidate the chain that was stated as materially superior to bid preferred by RadioShack. The lender here is discussions is Salus Capital Partners who submitted an offer jointly with other three liquidators. It plans to offer $271 million in cash at the upcoming auction set to commence next week.
Salus Capital Partners said that RadioShack favored a bid from Standard General hedge fund, even though the offer included just $16.4 million in cash. The hedge fund company intends to keep open almost 1,740 RadioShack outlets, many in support with wireless operator Sprint Corp (NYSE:S). The lender stated that the process was neither transparent nor fair and there was never a strong platform for potential bidders.
The intervene appeal
The result of RadioShack auction will depend upon Judge Brendan Shannon. The lender asked Shannon to plan a hearing, when the judge is named to approve the outcome of the auction. As of now, the U.S. Judge had not approved lender’s request for immediate hearing. The bidding commenced with an offer of $145 million from hedge fund Standard General. The private auction going on at offices of Jones Day law firm located in New York. The capital raised will be used to repay RadioShack creditors. In the upcoming auction, RadioShack is apparently offering customer personal data.
The other details
The lender said the latest bid from Standard General worth $158.3 million included little cash and a large part was being offered in the form of debt forgiveness or a credit bid. Hedge fund Company Standard General offered electronics retailer with a $535 million financing package in 2014 to assist the company build up inventory for the year end shopping season.