According to a report from Chapter 11 Dockets, Salus Capital Partners
has asked the Delaware bankruptcy court to convert RadioShack’s bankruptcy cases from Chapter 11 proceedings to Chapter 7.

According to a preliminary statement filed in the case, Salus says that RadioShack’s estates are “likely administratively insolvent and every day the Debtors remains in Chapter 11, mounting administrative expenses continue occur at staggering and unsustainable levels.”

According to the motion, the debtors’ most recent professional fee estimate through January 2016 will exceed $45 million.

According to the filing, Salus said it would bear the bulk of the costs incurred during the debtors’ extended time Chapter 11. Salus, the last out lender under the SCP credit agreement is projected to receive less than $.50 on the dollar, plus whatever it can recover in its adversary proceeding.

To read the documents: click here