A lawyer for the former RadioShack Corp. said that the company has made significant progress toward wrapping up its bankruptcy case, but a handful of potential roadblocks remain, The Wall Street Journal reported yesterday. During a hearing, lawyers for the electronics retailer told Hon. Brendan L. Shannon that the former RadioShack and its creditors have reached an agreement on the general terms of a settlement that would provide funding for its chapter 11 plan and cover mounting administrative expenses such as legal fees. The agreement resolves a bid by Salus Capital Partners LLC to shut down the electronics retailer’s restructuring efforts in favor of a chapter 7 liquidation. Salus, a hedge fund owed $150 million, had previously said that what remains of RadioShack can be dealt with more efficiently in chapter 7, which would oust teams of expensive lawyers and advisers and replace them with a trustee. Some of the finer points of the settlement haven’t yet been worked out, and any formal deal will be subject to final court approval.
