now read that last sentence....counting on lawsuits..the amount of coverage on those suits could be very large...there may be alot of insurance coverage...we will see when the paln or reorganization is submitted....again..i am sorry to tell u this Dave,,but your shares will be absolutely worthless
The “new” RadioShack only has temporary rights to use the name and certain patents as it gets back on its feet. After six months, unless Standard General comes up with more money, RadioShack may need a new name.
Rival bidder Salus has first claim on the RadioShack intellectual property, including the trademark, patents and customer lists. Owed $150 million, Salus will get only partial payment out of the sale to Standard General. The intellectual property may be sold separately, and it could be sold to Standard General. However, Salus is in active talks with other potential buyers RadioShack’s intellectual property, advisers said in court action.
The sale means little or no money for landlords, suppliers and unsecured bondholders.
“Unfortunately, when it comes to unsecured creditors, there was nothing Standard General could provide from an economic perspective,” said Susheel Kirpalani, lawyer for the official committee representing RadioShack’s unsecured creditors.
To ensure the company-saving transaction made it through court, the unsecured creditors committee agreed to support it. Creditors that wound up on the bottom of RadioShack’s pile of debt are counting mostly on potential litigation to cover what they are owed. Estimates are that RadioShack owes bondholders, suppliers and landlords about $500 million.
exactly....Standard General is now the ONLY owner,....they own all the shares of newco....they forgave all their debt and the estimates are that there will be enough to pay all of the secured creditors...then the unsecured debts will need to be paid..if anything is left after they are paid..u will be paid..but there wont be nearly enough to pay off the unsecured debts...they may receive something from two lawsuits they have against hedge funds and radioshack...there most likely is seberal hundred million of insurance..thats a big guess..but those cases already have most llikely settled because the unsecured comittee actially supported the SG takeover...recall that SG said their offer was conditioned on noone challengeing their loans..thus the suits must have been settled
they HAVE to be paid first..exactly...the only assets left are those lawsuits...once the secured creditors are paid,...any settlements from those suits will go to the unsecured boys.
no...u must be uneducated
a reorganization plan is when all the assets are tallied up from the sale, and distributed to all the creditors....Standard General is the new owner..they own 100% of the shares of the newco....u as an old shareholder will recive nothing
is he on the board
the key language is chapter 11...that connotes that this is a reorginization as opposed to a liquidation so even if the company survives the existing shares will be cancelled..i camn see why..there is a creditors committe of unsecured holders who will make sure that they get 100 cents before the existing shares get anything....
also noticed that the bonds are now trading at 5% of their face value.....so i guess the equity is going to 0...am i analyzing this correctly? am green as can be to this RSH situation