RadioShack Creditors Sue Hedge Fund Standard General
August 31 2015 - 04:40PM
Dow Jones News
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.
Standard General and Wells Fargo couldn't immediately be reached
for comment.
Write to Matt Wirz at matthieu.wirz@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
August 31, 2015 16:25 ET (20:25 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
Wells Fargo (NYSE:WFC)
Historical Stock Chart
From Feb 2024 to Mar 2024
Wells Fargo (NYSE:WFC)
Historical Stock Chart
From Mar 2023 to Mar 2024