RadioShack expects no recovery for equityholders in Chapter 11 case

By Caroline Salls

Pittsburgh, March 12 – RadioShack Corp. believes there will be no recovery for equityholders in its Chapter 11 proceedings, according to a company news release.

RadioShack noted that equityholders of a company in Chapter 11 bankruptcy generally receive value only if all secured and unsecured claims are fully satisfied. The company said it believes that the claims of its secured and unsecured creditors will not be fully satisfied.

In the release, RadioShack reiterated its belief that there will be no recovery for equityholders in light of the trading volume in its common stock at prices in excess of $0.20 per share.

RadioShack is a Fort Worth technology retailer that filed for bankruptcy on Feb. 5 in the U.S. Bankruptcy Court for the District of Delaware. Its Chapter 11 case number is 15-10197.

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