WILMINGTON, Del. (AP) _ Former Fort Worth-based retailer RadioShack has reached a tentative settlement in a dispute over the treatment of gift card holders in the electronics retailer’s bankruptcy case.
Under a settlement outlined Wednesday, holders of roughly a third of the $46 million in outstanding gift cards would receive priority status and be paid in full. Other holders of gift cards would be lumped in with general unsecured creditors. They’d likely receive pennies on the dollar, if anything.
The difference between the two groups depends on how they received their cards.
The agreement stems from a complaint filed by the Texas attorney general’s office, which is working with attorneys general in several states on behalf of gift card holders of Fort Worth-based RadioShack.
Attorneys for some gift card holders may still try to press their claims.