Delaware

Delaware Judge Approves Settlement in RadioShack Gift Card Dispute

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.

But in a significant development reached shortly before the hearing, General Wireless, a hedge fund affiliate that acquired the RadioShack trademark and more than 1,740 of the electronics retailer's stores, has 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.

Copyright AP - Associated Press
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