WILMINGTON, Del. – An attorney for a lender that lost a bankruptcy auction for electronics retailer RadioShack has asked a Delaware judge to reopen the bidding.
RadioShack says an offer of about $160 million from hedge fund Standard General LP was the best bid submitted this week. Standard General’s bid, which would keep 1,743 stores open and preserve about 7,500 jobs, consists mostly of credit on debt it is owed.
Salus Capital Partners, which is owed about $150 million, says it is willing to pay about $271 million for RadioShack’s assets, and that the auction was simply a charade in which Standard General cut a deal.
Salus also argued along with other senior RadioShack lenders at a hearing Thursday that Standard General hasn’t met the requirements for being allowed to credit bid.