Salus Capital LLC filed an adversary complaint on Wednesday in RadioShack Corp's chapter 11 case that seeks to hold credit-bidding in the electronic retailer's upcoming auction to $111 million, Reuters reported yesterday. RadioShack won bankruptcy court approval last month to auction approximately 2,000 of its stores with an initial $200 million bid from Standard General hedge fund, which will keep about half of the stores open and operate them under an agreement with Sprint Corp. It is unclear how much of its credit that Standard General plans to use in its bid at the March 23 auction. RadioShack owes Salus, a middle-market lender and subsidiary of Harbinger Group Inc., and Cerberus Capital Management $250 million for a loan. The case is In re RadioShack Corp., et al., Case No. 15-10197 in U.S. Bankruptcy Court for the District of Delaware.
