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It is scary/funny - whoever is here needs to watch out for the announcement when they are pulling the plug.
I dunno but its plenty scary....probably trying to lure buyers so the funds can dump shares
Why is this moving, short covering day?
Added this morning .... I like the magic jack news
RadioShack even said it was worthless. Jeesh!
"2-Apr-2015 8K filed by Radio Shack [now RS Legacy Corporation] : "... there will be no value for common stockholders of the Company following the Sale and completion of the bankruptcy liquidation process. Equity holders of a company in Chapter 11 bankruptcy generally receive value only if all claims of the company's secured and unsecured creditors are fully satisfied. The Company believes that the claims of its secured and unsecured creditors will not be fully satisfied following completion of the Sale, the other transactions discussed herein and the liquidation of the Company's remaining assets."
So that was a fast 80% loss, eh?
"I really don't see this dying but then it's only my gut feel"
I'm a lawyer and I see it dying... quickly. You'll find that studying court filings beats gut feelings. In investing, nothing is more worthless-- usually counter productive -- than gut feelings or hunches. But that's what drives most newbie investing.
Yeah this was not unexpected nevertheless it's not good news. I guess we shall see how they fare in coming weeks but my guess is downwards fast for a few weeks then a pick up - I really don't see this dying but then it's only my gut feel And that does not pay the bills. I'm still selling on Monday
More Bad News: "RadioShack Tax Ruling Imperils Chapter 11 Plan"
September 11, 2015
(c) 2015 Dow Jones & Company, Inc.
"The former RadioShack tripped over a major hurdle Friday, when a bankruptcy judge ruled the distressed former electronics retailer owes the Internal Revenue Service at least $72 million and possibly more in interest and penalties.
Judge Brendan Shannon of the U.S. Bankruptcy Court in Wilmington, Del., had urged the former RadioShack and the IRS to resolve the tax dispute consensually, but negotiations ultimately came to an impasse. The former RadioShack, already short on cash, must now find a way to satisfy the IRS's priority claim before its chapter 11 plan goes before Judge Shannon for final approval next week."
There will not be a recovery for commons. The stock will keep trading most likely until the bankruptcy is over, but they may cancel the shares sooner.
"Judge approves settlement in RadioShack gift card dispute"
"WILMINGTON, Del. (AP) -- RadioShack has won court approval of a settlement involving priority treatment of certain gift card holders in the company's bankruptcy and has agreed to sweeten the deal for other cardholders.
Under the settlement approved Thursday, holders of roughly a third of the $46 million in outstanding gift cards will receive priority status and have claims paid in full."
http://finance.yahoo.com/news/judge-approves-settlement-radioshack-gift-163241782.html
Unsecured creditors won't have much luck in court arguing that Radio Shack should have shuttered earlier (and fired employees earlier) to conserve dwindling assets. In their defense, management might lug in IHUB pumpers who were certain the chain only needed a bit of tweaking to become thriving Drone Shacks and Amazon pickup points.
Judges won't second guess company management absent clear collusion/fraud.
Probably still a few looking at the store and expecting some kind of Rapture here.
So even the bondholders squawking because they got nothing . . . geez what a train wreck. Amazing why anyone thought they were getting anything.
"The defunct retailer, which has officially changed its name, now calls itself RS Legacy Corp.The remains of RadioShack are scheduled to go before the U.S. Bankruptcy Court in Wilmington, Del., on Sept. 16 to seek confirmation of the chapter 11 plan that divides the remaining assets, including any proceeds from the lawsuit over the company's failure"
" Liquidating the company in 2014, could have raised cash to pay out unsecured creditors around 21 cents on the dollar, but left shareholders like Standard General with nothing, the suit alleges. The firm's bonds now trade for less than one cent on the dollar, according to MarketAxess."
"RadioShack Creditors Sue Hedge Fund Standard General
By Dow Jones Business News, August 31, 2015, 04:25:00 PM EDT
RadioShack's junior creditors are suing hedge fund Standard General LP, the company's largest prebankruptcy shareholder and current owner, in a last-ditch effort to get repaid.
The lawsuit, filed Monday in U.S. District Court in Fort Worth, Texas, by the committee representing RadioShack's unsecured creditors, also names Wells Fargo & Co. and former Chief Executive Officer Joseph Magnacca, alleging they helped Standard General take over the company at creditors' expense.
The suit comes as the electronics retailer moves forward with a number of settlements aimed at speeding its exit from chapter 11 protection. The bankruptcy sale of RadioShack's assets earlier this year raised only enough to cover the company's top-ranking loans, leaving litigation against RadioShack's owner and lender as the unsecured creditors best hope of seeing a recovery.
"The allegations are without merit and the firm intends to defend itself vigorously," a spokesman for Standard General said. "Standard General was RadioShack's largest unsecured bondholder at the time of the bankruptcy filing so it's not credible to think we wouldn't be aligned with unsecured creditors." Mr. Magnacca and Wells Fargo couldn't immediately be reached for comment.
RadioShack's unsecured creditors, including AT&T Inc., landlords of RadioShack stores, former employees and holders of $330 million bonds, claim Standard General used Mr. Magnacca to outflank the company's own financial advisers.
RadioShack lender Wells Fargo also helped Standard General by arranging a new loan for RadioShack last October although analysts at the bank knew the company was insolvent, according to the lawsuit.
"Would it be risky for me to buy you a gift card from [RadioShack] now for your Christmas present?" Wells Fargo analyst David Eller joked with other analysts in an electronic message sent Oct. 2, according to the suit. "I think you are good but you will definitely need to use it before [March 15]," replied Grant Jordan, a managing director in the bank's research department.
According to the suit, Standard General and Mr. Magnacca maneuvered last year to block recommendations by RadioShack's financial advisers to sell the company, possibly in bankruptcy court. Liquidating the company in 2014, could have raised cash to pay out unsecured creditors around 21 cents on the dollar, but left shareholders like Standard General with nothing, the suit alleges. The firm's bonds now trade for less than one cent on the dollar, according to MarketAxess.
Standard General bought RadioShack's brand and leases for about 1,700 stores in May after a heated bankruptcy court battle. The deal marked the culmination of a yearlong campaign by the hedge fund to salvage its purchase of 9.8% of RadioShack's stock in early 2014.
In July 2014, Standard General gave Mr. Magnacca a position on the board of directors of another company in which it owned the largest stake, American Apparel Inc. The hedge fund's founder, Soohyung Kim, counseled Mr. Magnacca that " frankly given what is happening at [RadioShack] having something else going on might be healthy," according to the creditor suit.
American Apparel warned in public statements this month that it may file for bankruptcy court protection.
At the same time, Mr. Kim was pressuring Mr. Magnacca to fire AlixPartners LLP, one of RadioShack's financial advisers.. In early August Mr. Kim wrote to Mr. Magnacca that "Holly [Etlin of AlixPartners] is a snake, you told me that you recognized that early and we already know her...She should already be gone," according to the suit. Ms. Etlin declined to comment
Mr. Kim encouraged RadioShack's directors to work around the same advisers the board had selected in 2013 to help the company navigate a prolonged decline in sales. Mr. Magnacca wrote senior managers instructing them concerning the advisers "not to share information that they can use against us and our goals," according to the suit.
Standard General wanted to bypass the advisers to enact a plan that would ensure its continued control of the company after it went bankrupt, according to the suit. The strategy hinged on Standard General becoming a secured lender to RadioShack because loan holders stand at the front of the line in corporate bankruptcies, while shareholders come last, a person familiar with the company said.
The creditors' suit, which also names Mr. Kim and RadioShack's directors for breaches of their fiduciary duty, seeks to claw back tens of millions in fees paid to Standard General and Wells Fargo as so-called fraudulent transfers if the company was insolvent at the time it took on new liabilities. Such lawsuits—seeking to retrieve transfers a troubled company makes before collapsing—are often unsecured creditors' best shot at seeing a recovery on their losses.
The defunct retailer, which has officially changed its name, now calls itself RS Legacy Corp.The remains of RadioShack are scheduled to go before the U.S. Bankruptcy Court in Wilmington, Del., on Sept. 16 to seek confirmation of the chapter 11 plan that divides the remaining assets, including any proceeds from the lawsuit over the company's failure."
Read more: http://www.nasdaq.com/article/radioshack-creditors-sue-hedge-fund-standard-general-20150831-00837
Too bad RSHCQ is RS Legacy Corp, not RadioShack. Paying more for the old gift cards will come from funds for high priority creditors, such as the many bondholders, rather than the old RSH shareholders.
And pay off about $500 million to creditors.
if they do relaunch they will have to get a new ticker
Plug should get pulled on this stock any time now . . .
RadioShack Announces Re-Launch of Business, Education, Government Commercial Accounts Business!!!!!
This is HUGE News!!!!! Stock price already going up!
LOL yeah. Distressed gift cards.
to bad we cant go out and buy them as distressed 20 cent on the dollar then get full price
I would think that gift card holders would rank pretty far up the food chain. Above unsecured creditors, anyway. Who knows.
"RadioShack Plans to Refund Some Gift Cards in Full"
"Lawyers for the former RadioShack Corp. on Wednesday outlined a settlement of a lawsuit over about $40 million in unredeemed gift cards, many of which are now likely to be repaid in full.
Gregory Gordon, a lawyer for the former RadioShack, told Judge Brendan Shannon of the U.S. Bankruptcy Court in Wilmington, Del., during a hearing that the settlement was fair and fully resolved a lawsuit brought by Texas’ attorney general and joined by many other states over the unredeemed gift cards.
“This is a very, very favorable settlement from the standpoint of gift-card holders,” he said.
Texas and the other states had asked Judge Shannon to rule that they have the right to administer gift-card claims on their residents’ behalf. Texas has also asked that all such claims be given priority status, meaning gift-card claims would be paid ahead of many of the former RadioShack’s other creditors."
Say BYE BYE. Happy to see this junk battery company gone. Took too long for this to happen. Shareholders left holding the bag. LOL Enjoy the worthless .01 shares.
Its over folks. Time it running out, shares to be canceled. Get what ever you can before it stop trading.
Meaningless - if you hold when the plug gets pulled its all gone.
52 week low@.053 let's see if we get 52 week high or better "Plug gets pulled"
Yes. It has already been proven in BK court documents that commons will be wiped out but folks hype it anyway. Beyond me.
Plug is getting pulled - commons have no chance. None.
As I said, my forecast is on schedule and up by a great margin already $$$$$$'mm
$1.40 is knocking on the door
Another low for bonds at 20 cents. Wild swings on little volume now. Typical I suppose as the end nears.
I've seen similar language in other BK filings... another example of why troubled stocks are treacherous and should be left to the very few pros who specialize in them. That's been my main point for a year.
I have no idea how often such a clause is invoked... probably never with large scale BKs.
BKs are like high level basketball games. Most of the fun is in the final 2 minutes of play. And that's where we are.
Thanks for posting that, Louis. Interesting that the debtors can agree to waive the effective date and pull the plug at any time.
'The conditions to Confirmation set forth in Section VIII.A. and the conditions to the Effective Date set forth in Section VIII.B. may be waived in whole or part in writing by the Debtors, subject to the consent of the Creditors' Committee and the SCP Secured Parties, at any time without an order of the Bankruptcy Court. Confirmation and the Effective Date will occur irrespective of whether any claims allowance process or related litigation has been completed.'
Its over, shares to be canceled - Doc 2751
cases.primeclerk.com/RadioShack/DownLoad-DownloadPDF?id1=MTY4Mzk2&id2=0&id3=0
The final end is here and the stock is due to be canceled. Document 2751:
Page 21:
Class 9 Interests (Stock Interests in RadioShack) are impaired. On the Effective Date, all outstanding Stock Interests of RadioShack will be cancelled. Upon such cancellation, no property will be distributed to, or retained by, holders of such Stock Interests of RadioShack.
Louis J. Desy Jr.
No its not. Anyone who buys and holds is going to get the plug pulled on them. Thats not nice.
Its going to be musical chairs as the final scramble for the exit takes place as the shares go to zero overnight. A few months ago on another BK everyone had about a half hour notice.
On misinterpretation of the news? Maybe. Those are the ones who the plug will get pulled on.
Thanks for ur best wishes but watch this coming two weeks, by 20th August my investment today will be doubled
GLTU - just watch for the plug getting pulled on ya . .
Perhaps but the real picture for us penny share guys is that 24/30% is right around the corner once again ~ lockin load for fast profits ~ watch it rebound on Wednesday $$$$$$
MOR has this about $500 million away from equity. Nothing for bondholders. Man what a train wreck.
On the Highway to Zero . . .
RSH bonds. $0.37 LOLOL!
One class of bonds for RSHCQ
There is only the one class of bonds; the $325 million issue with a maturity date of 2019.
Louis J. Desy Jr.
Oh yes, and the Washington Mutual Preferred Series R - it bottomed out briefly at 25 cents per $1000 face. They eventually recovered to about $300 some months later. Some of those folks who loaded up on them disappeared from the boards and were never heard from again.
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IBOX below line maintained by Mod Bar1080 who may not undertake to update iBOX info. Do your own research |
On February 5, 2015, RadioShack Corporation and 17 affiliated debtors (collectively, the "Debtors") each filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. The Debtors' cases are pending before the Honorable Brendan L. Shannon and are jointly administered under Case No. 15-10197. Name was changed to RS Legacy Corporation on June 22, 2015.
https://cases.primeclerk.com/radioshack/
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