FORT WORTH, Texas, Feb. 5, 2015 // PRNewswire // -- RadioShack Corporation announced today several actions intended to maximize value for the Company's stakeholders.
RadioShack currently has approximately 4,000 company owned stores in the U.S. Its more than 1,000 dealer franchise stores in 25 countries, the stores operated by its Mexican subsidiary, and its Asia operations are not included in the Chapter 11 filing or the agreements announced today.
Discussions are underway with interested parties to sell all of the company's remaining assets.
Joe Magnacca, RadioShack's chief executive officer, said, "These steps are the culmination of a thorough process intended to drive maximum value for our stakeholders."
RadioShack has made customary first-day motions with the Bankruptcy Court intended to support the continuation of its day-to-day operations for customers, employees, vendors and suppliers, and other business partners during the restructuring. As part of that, it is seeking Court approval to continue employee wages and certain benefits and honor certain customer programs. The motions are expected to be addressed by the Court in the coming days.
The Company has also secured a commitment for approximately $285 million in debtor-in-possession financing (DIP) from its current ABL lender group, led by DW Partners, LP. The DIP is intended to provide it with liquidity during the sale process. The DIP funding includes a roll up of the Company's prepetition revolver, letters of credit, and FILO facility. In addition, the facility will provide up to $20 million in incremental borrowing capacity.
Pursuant to the auction process the Company has filed for approval by the Court, all qualifying parties will have an opportunity to submit offers for evaluation through a Court-supervised competitive bidding process. Any sale will be subject to Court approval and other closing conditions. There can be no assurance that a sale will be consummated at the conclusion of this process.
The Company's legal advisor is Jones Day, its investment banker is Lazard Freres, and its financial advisors are The MAEVA Group and FTI.
Additional information about the process is available in the Restructuring Information section of www.RadioShackCorporation.com. Claims information is available there and at http://cases.primeclerk.com/radioshack, or by calling the Company's restructuring hotline at 844-794-3477 or +1-917-606-6439 (international).
This press release contains forward-looking statements, as referenced in the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect management's current views and exceptions regarding economic conditions, the retail industry environment and RadioShack. These statements can be identified by the fact that they include words like "anticipate," "believe," "estimate," "expect," "intend," "project," "guidance," "plan," "outlook" and other words with similar meaning. We specifically disclaim any duty to update any of the information set forth in this press release, including any forward-looking statements. These statements involve a number of risks and uncertainties that could cause our actual results or circumstances to differ materially from those expressed or implied in our forward-looking statements, including potential adverse effects of the Chapter 11 filing on relationships between the Company and its business partners, other creditors and third parties, including suppliers and customers, the potential inability of the Company to successfully complete the proposed auction process including the proposed transaction with General Wireless or another party and the continued availability of adequate capital financing. Any or all of these matters could have a material adverse effect on RadioShack. Additional factors that could cause our actual results to differ materially from the results discussed in our forward-looking statements include, but are not limited to, our ability to successfully execute and the effectiveness of our proposed store closure program; the underperformance or loss of certain of our important vendors, such as our wireless carrier providers, or breaches by them of our agreements with them. Additional information regarding these and other factors is included in RadioShack's filings with the SEC, including its most recent Annual Report on Form 10-K for the year ended Dec. 31, 2013 and Quarterly Reports on Form 10-Q.
RadioShack is a leading retailer focused on connecting customers with personalized solutions and discovering what's possible through the latest in consumer technology. For more information on RadioShack Corporation, please visit www.radioshackcorporation.com.
SOURCE RadioShack Corporation