Blank Rome Advises on RadioShack Rescue Financing and Subsequent Bankruptcy Financing and Restructuring
Blank Rome is advising a group of multi-strategy funds constituting the "first out" lenders under a $285 million superpriority debtor-in-possession credit facility for RadioShack Corporation and its affiliates in the RadioShack chapter 11 cases. The DIP facility consists of (a) a dollar-for-dollar roll-up of approximately $250 million of prepetition obligations previously funded in connection with a rescue financing for RadioShack in October 2014, (b) up to $20 million in new money revolving loans, and (c) additional letter of credit obligations of up to $15 million. The DIP facility provided RadioShack with liquidity permitting the sale of a majority of RadioShack's assets to an affiliate of Standard General, which, through an alliance with Sprint, intends to keep open more than 1,700 stores.
Lawrence F. Flick II
James E. Odell