RadioShack (NYSE:RSH) won court approval of a settlement involving gift-card holders following the company's Chapter 11 bankruptcy in February.
Approved by a Delaware bankruptcy judge on Thursday, shoppers who have about one-third of the $46 million outstanding RadioShack gift cards will have their claims paid in full, My San Antonio reported.
In addition, General Wireless, an affiliate of Standard General, has agreed to honor all RadioShack gift cards for 50 percent of purchases. Thus, a $20 gift card could be used for $5 of a $10 purchase, $10 of a $20 purchase, or redeem the full amount of the gift card with a $40 purchase. Standard General is the hedge fund that acquired RadioShack's trademark and more than 1,740 of the electronic retailer's stores after it filed for bankruptcy.
Therefore, those RadioShack gift-card holders that don't have priority status will still be able to get some monetary benefit out of the prepurchased gift cards.
The new settlement is still subject to approval at a court hearing next week that will confirm or deny RadioShack's bankruptcy plan.
RadioShack has agreed to send email notices to all gift-card holders whose addresses are available. The rights will also be listed on the website.
-See this My San Antonio article
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