David M. Fournier Quoted in Law360 Article, 'RadioShack's E-Commerce-Focused Ch. 11 Plan Gets OK'
David M. Fournier, a co-chair of Pepper Hamilton's Corporate Restructuring and Bankruptcy Practice Group, was quoted in the October 25, 2017 Law360 article, " RadioShack's E-Commerce-Focused Ch. 11 Plan Gets OK."
During a confirmation hearing in Wilmington, RadioShack attorney David Fournier of Pepper Hamilton LLP told the court its plan will swap $5 million in secured debt held by Standard General LP into the equity of the reorganized company,
which will be moving away from its physical store model.
“The operations of the reorganized debtor will be focused on the debtor’s dealer network and online operations, rather than the brick-and-mortar retail business,” Fournier said.
Under the terms of the plan, RadioShack will assume more than $23 million in second-lien debt through the issuance of new second-lien secured notes. A litigation trust is to be formed that will pursue claims against the debtor’s
former co-branding partner Sprint Corp. as well as certain pre-petition officers and directors of RadioShack, according to Fournier.