Davis Polk is advising a group of investors constituting the “first out” lenders under a $285 million superpriority debtor-in-possession credit facility for RadioShack Corporation and its affiliates (collectively, “RadioShack”) in the RadioShack chapter 11 cases. The facility consists of (a) up to $20 million in new money revolving loans, (b) letter of credit obligations of up to $15 million and (c) a dollar-for-dollar roll-up of approximately $250 million of prepetition obligations. A final order approving the DIP facility was entered by the bankruptcy court on Friday, March 6.

RadioShack is a leading electronics retailer with more than 5,000 stores worldwide. RadioShack filed voluntary petitions under chapter 11 of the United States Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware on February 5, 2015, citing increasing competition in the consumer electronics industry and declining revenues. RadioShack plans to sell between 1,500 to 2,400 stores and other assets through an auction and sale process. Under the proposed bidding procedures, an affiliate of Standard General L.P. will act as the stalking-horse bidder.

The Davis Polk insolvency and restructuring team includes partners Damian S. Schaible and Elliot Moskowitz, associates Darren S. Klein, Eli J. Vonnegut and Christopher S. Robertson. All members of the Davis Polk team are based in the New York office.

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