Salus Capital complaint urges cap on credit bid for RadioShack
Salus Capital LLC filed an adversary complaint on Wednesday in RadioShack Corp's Chapter 11 bankruptcy that seeks to hold credit bidding in the electronic retailer's upcoming auction to $111 million.RadioShack won bankruptcy court approval last month to auction about 2,000 of its stores with an initial $200 million bid from Standard General hedge fund, which will keep about half of the stores open and operate them under an agreement with Sprint Corp (S.N).Credit bidding allows a creditor to use the debt it is owed as currency during a bankruptcy auction sale. It is unclear how much of its credit Standard General plans to use in its bid at the March 23 auction.Â Â Â  Â Â Â Â Â Â Â Â Â Â  RadioShack owes Salus, a middle-market lender and subsidiary of Harbinger Group Inc, and Cerberus Capital Management $250 million for a loan.Salus and RadioShack declined to comment on the filing. Standard General was not immediately available for comment.The case is In re: RadioShack Corp, et al., Case No. 15-10197 in U.S. Bankruptcy Court for the District of Delaware