RadioShack gets court approval for interim bankruptcy loan

U.S. Bankruptcy Judge Brendan Shannon in Wilmington, Delaware approved the interim financing and set a Feb. 20 hearing to consider RadioShack's request for approval to borrow up to $285 million.

At the same hearing later this month the company will ask Shannon to approve procedures for bidding on RadioShack's assets. The company is in the process of closing around 1,100 stores that it was unable to shut outside bankruptcy due to disagreements with lenders.

RadioShack posted 11 straight quarterly losses after failing to transform itself into a destination for mobile phone buyers.

Standard General has said it is working with Sprint Corp to open mobile phone sales centers in at least 1,750 of the RadioShack stores it plans to acquire. The sale agreement with Standard General will be subject to higher bids, and RadioShack's lawyers have said the company will even consider proposals from liquidators.

The case is In Re RadioShack Corp, U.S. Bankruptcy Court, District of Delaware, No. 15-10197.