Bankrupt consumer-electronics chain RadioShack Corp. pushed back against a creditor panel’s criticisms of its proposed auction procedures, saying that a drawn-out sales process could diminish the value of the assets and hurt recoveries, Bloomberg News reported yesterday. RadioShack, with about 4,000 locations, sought protection from creditors Feb. 5, with an agreement to sell 1,500 to 2,400 of its locations to a unit of hedge fund Standard General LP, its biggest shareholder. Some of those stores would be operated under a co-branding deal with Sprint Corp., the wireless carrier. The proposed sale procedures permit Standard General to credit bid its $250 million secured claim as currency at an auction in lieu of cash. The official creditors’ committee filed objections last week saying that credit bidding will chill the sale process. Standard General also defended the auction procedures, calling the creditor criticisms a “litany of innuendo and irrelevant detail.”
