RadioShack has won court approval of a settlement involving priority treatment of certain gift card holders in the company's bankruptcy and agreed to sweeten the deal for other cardholders.
The settlement approved Thursday means holders of about a third of the $46 million in outstanding gift cards will receive priority status and have claims paid in full.
A significant development was reached shortly before the hearing in Delaware. General Wireless, a hedge fund affiliate that acquired the Fort Worth-based RadioShack trademark and more than 1,740 of the electronics retailer's stores, agreed to honor all RadioShack gift cards for 50 percent off merchandise purchases.
That means nonpriority gift card holders under Thursday's settlement have an alternative to being left with only pennies on the dollar, if anything, as general unsecured creditors.
