Tentative settlement in RadioShack gift cards dispute
Wilmington, Del. — RadioShack has reached a tentative settlement in a dispute over the treatment of gift card holders in the electronics retailer’s bankruptcy case.
Under a settlement outlined Wednesday, holders of roughly a third of the $46 million in outstanding gift cards would receive priority status and be paid in full.
Other holders of gift cards would be lumped in with general unsecured creditors, meaning they likely would receive pennies on the dollar, if anything.
The difference between the two groups depends on how they received their cards.
The agreement stems from a complaint filed by the Texas attorney general’s office, which is working with attorneys general in several states on behalf of RadioShack gift card holders.
Attorneys for some gift card holders say they may still try to press their claims.