IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF DELAWARE
In re:
§
CHAPTER 11
§
RADIOSHACK CORPORATION, et al.,
§
Case No. 15-10197 (MFW)
§
Jointly Administered
Debtors
§
§
Related Docket Nos. 18, 36, 38, 106
§
& 114
CERTAIN TEXAS TAXING ENTITIES’ LIMITED OBJECTION TO
DEBTORS’ COMBINED MOTION FOR (I) ORDERS: (I) ESTABLISHING
BIDDING AND SALE PROCEDURES; (II) APPROVING
THE SALE OF ASSETS; AND (III) GRANTING RELATED RELIEF
TO THE HONORABLE UNITED STATES BANKRUPTCY JUDGE:
Clear Creek I.S.D., Harris County M.U.D. No. 105, Spring Branch I.S.D., City of
Houston, Spring I.S.D., Alief I.S.D., Harris County M.U.D. No. 276, Tomball I.S.D., City of
Tomball, Klein I.S.D., La Porte I.S.D., West Harris County M.U.D. No. 16, Humble I.S.D.,
Harris County M.U.D. No. 186, City of Bellaire, Harris County M.U.D. No. 321, Malcomson
Road U.D., Harris County M.U.D. No. 132, Galena Park I.S.D., Harris County M.U.D. No. 285,
Harris County M.U.D. No. 249, Cinco M.U.D. No. 12, Willow Fork Drainage District, City of
Rosenberg, Fort Bend I.S.D., Fort Bend L.I.D. No. 2, City of Katy, Harris-Fort Bend M.U.D. No.
4, City of Meadows Place, Brazoria County Tax Office, Dickinson I.S.D., Woodlands Metro
Center M.U.D., Woodlands Road U.D. No. 1, Magnolia I.S.D., Walker County C.A.D.,
Arlington I.S.D., Eagle Mountain-Saginaw I.S.D., City of Azle, Carroll I.S.D., Crowley I.S.D.,
Mansfield I.S.D., City of Benbrook, City of Burleson, Burleson I.S.D., City of Cleburne,
Cleburne I.S.D., Johnson County/Hill Coll, Ennis I.S.D., Richardson I.S.D., Houston County,
City of Greenville, Greenville I.S.D., Tyler I.S.D., Wichita Falls City, Wichita Falls I.S.D.,
Wichita County, Cooke County, Gainesville Hosp, North Central TX Coll Dist, Lat Rd for
Cooke Co., Gainesville City, Midland County , Lubbock C.A.D., Weslaco I.S.D., City of
Weslaco, McAllen I.S.D., Colorado County, Copperas Cove I.S.D., Kerr County, Kendall
County, Gray County Tax Office, Potter County Tax Office , Randall County Tax Office and
Hutchinson County Tax Office, secured creditors and parties in interest (“Certain Texas Taxing
Entities”) file this its Limited Objection to Debtors’ Combined Motion for Orders: (I)
Establishing Bidding and Sale Procedures; and (II) Approving the Sale of Assets; and (III)
Granting Related Relief (the “Sale Motion”)
1
and respectfully shows as follows:
1.
The Certain Texas Taxing Entities are political subdivisions of the State of Texas,
authorized and required by the Constitution and laws of the State of Texas to levy and collect ad
valorem taxes on taxable real and personal property within their boundaries.
2.
The Certain Texas Taxing Entities have claims for property taxes assessed on the
Debtors’ tangible personal property located within their boundaries for the 2014 and estimated
2015 tax years in the approximate amount of $307,334.33 as of the Petition Date. These claims
are set forth in Exhibit “A” attached hereto.
3.
The Certain Texas Taxing Entities’ claims are secured by unavoidable liens that are
generally superior to those of any other secured claimant pursuant to Article VIII, Section 15 of
the Texas Constitution, and Sections 32.01 and 32.35(b) of the Texas Property Tax Code.
4.
It appears to the Certain Texas Taxing Entities that paragraph X of the decretal provisions
of the proposed Sale Order provide for attachment of their tax liens to the sale proceeds, and that
their taxes are a Permitted Encumbrance under the Stalking Horse APA, but even so, the Certain
Texas Taxing Entities do not believe that this adequately protects their tax liens and claims as
required by 11 U.S.C. § 363(e). The proceeds from the sale of the Certain Texas Taxing Entities’
collateral constitutes the cash collateral of the Certain Texas Taxing Entities, and it objects to the
use of its collateral to pay any other creditors of the estates. Pursuant to 11 U.S.C. §363(c)(4),
absent consent by the Certain Texas Taxing Entities or an order of the Court permitting use of its
cash collateral, the Debtors “shall segregate and account for any cash collateral” in their
possession. The Debtors have not filed a motion seeking to use the cash collateral of the Certain
Texas Taxing Entities, except to the limited extent set forth in the DIP Funding Motion, nor has
there been a hearing on the use of the Certain Texas Taxing Entities’ collateral. Accordingly,
absent its consent, a segregated account must be established from the sale proceeds to comply
with the requirements of § 363(c)(4).
5.
The proceeds from the sale of the Certain Texas Taxing Entities collateral should not be
distributed to any other party unless and until its claim, including any interest thereon as allowed
under 11 U.S.C. §§ 506(b), 511 and 1129, are paid in full.
6.
Paragraph U of the decretal provisions of the proposed Sale Order allows the Buyer to
Credit Bid an Allowed Claim of an unspecified amount. In the event of a credit bid, to the extent
there are no sale proceeds to which the tax liens can attach and which can be used to pay the
claims of the Certain Texas Taxing Entities. In the event of a credit bid by a junior lienholder,
the property should be sold subject to the senior tax liens or the liens should be paid at closing.
7.
The Certain Texas Taxing Entities object to a credit bid by a junior lienholder to the
extent that it would result in the avoidance of the tax liens. There is no legal or equitable basis
for subordinating or avoiding the tax liens in this manner. Absent provision for the adequate
protection of the tax liens, in the form of adequate funds set aside in a segregated account as
requested above, the Certain Texas Taxing Entities object to the approval of a sale on a credit
bid.
WHEREFORE, the Certain Texas Taxing Entities object to the Debtors’ Sale Motion and
request this Court to order appropriate provisions to assure the protection of the position of these
secured tax creditors, and grant them such other and further request other relief as is just and
proper.
Dated: February 17, 2015.
Respectfully submitted,
PERDUE, BRANDON, FIELDER, COLLINS & MOTT, L.L.P.
Attorneys for the Certain Texas Taxing Entities
1235 North Loop West, Suite 600
Houston, Texas 77008
(713) 862-1860 (phone)
(713) 862-1429 (fax)
/s/ Owen M. Sonik
-+
Owen M. Sonik
Texas State Bar No. 18847250
Elizabeth Banda Calvo
Texas State Bar No. 24012238
(817) 505-4733 (phone)
(817) 860-6509 (fax)
CERTIFICATE OF SERVICE
I hereby certify that on this the 17
th
day of February, 2015, I sent a true and correct copy
of the above and foregoing Certain Texas Taxing Enitites’ Limited Objection to Debtors’ Sale
Motion to the following parties by the following means:
DEBTOR
RadioShack Corporation
VIA First Class U.S. Mail
Attn: Bob Donohoo
RadioShack Circle
Fort Worth, TX 75201
Attn: Gregory M. Gordon
2727 N. Harwood Street
Dallas, TX 75201
PEPPER HAMILTON
Attn: David M. Fournier, whose email address is:
fournierd@pepperlaw.com
COUNSEL FOR STALKING HORSE
DEBEVOISE & PLIMPTON LLP
Attn: Richard Hahn, whose email address is:
rfhahn@debevoise.com
MORRIS NICHOLS ARSHT & TUNNELL
Attn: Gregory Werkheiser, whose email address is:
gwerkheiser@mnat.com
DLA Piper LLP
Attn: Gregg Galardi, whose email address is:
gregg.galardi@dlapiper.com
UNITED STATES TRUSTEE
Richard L. Schepacarter, whose email address is:
richard.schepacarter@usdoj.gov
/s/ Owen M. Sonik
Entity
Location
Geocode
Tax Years
Claim
Entity
# of stores
Claim
Years
Clear Creek ISD 304 W Bay Area Blvd 2082260 2015 $2,003.57 Clear Creek ISD 3 $6,885.66 2015
HC MUD 105 6037 N Fry Rd 2138771 2014-15 $3,035.26 HC MUD 105 1 $3,035.26 2014-15
Spring Branch ISD 1645 W Sam Houston Pkwy 2068090 2015 $257.31 Spring Branch ISD 6 $10,575.23 2015 City of Houston 1645 W Sam Houston Pkwy 2068090 2015 $116.45 City of Houston 8 $6,797.26 2015
Spring Branch ISD 1018 Gessner Dr 0286191 2015 $2,164.12 Spring ISD 2 $4,786.64 2015
City of Houston 1018 Gessner Dr 0286191 2015 $979.37 Alief ISD 6 $13,043.86 2015
Spring ISD 348 FM 1960 0428958 2015 $2,092.74 HC MUD 276 1 $1,514.93 2014-15
Alief ISD 9511 Southwest Fwy 0086951 2015 $1,956.61 Tomball ISD 2 $5,474.03 2015
Spring Branch ISD 633 Memorial City Mall 0007311 2015 $2,763.38 City of Tomball 1 $695.53 2015 City of Houston 633 Memorial City Mall 0007311 2015 $1,250.57 Klein ISD 3 $5,798.14 2015
Spring Branch ISD 1461 Wirt Rd 0007310 2015 $1,635.54 La Porte ISD 1 $2,442.92 2015
City of Houston 1461 Wirt Rd 0007310 2015 $740.16 West HC MUD 16 1 $1,724.45 2014-15
Spring Branch ISD 14356 Memorial Dr 0007309 2015 $2,116.11 Humble ISD 4 $8,771.64 2015
City of Houston 14356 Memorial Dr 0007309 2015 $957.64 HC MUD 186 1 $436.94 2015
Alief ISD 12670 Bissonnet 0016879 2015 $1,998.60 City of Bellaire 1 $655.55 2015
HC MUD 276 5005 Highway 6 0022508 2014-15 $1,514.93 HC MUD 321 1 $2,747.69 2015
Tomball ISD 14320 FM 2920 Rd 0107732 2015 $2,770.27 Malcomson Road UD 1 $954.27 2015
City of Tomball 14320 FM 2920 Rd 0107732 2015 $695.53 HC MUD 132 1 $134.36 2015
Klein ISD 16840 Stuebner Airline Rd 0163449 2015 $2,194.99 Galena Park ISD 1 $3,109.73 2015
La Porte ISD 9001 Spencer Hwy 0173850 2015 $2,442.92 HC MUD 285 1 $1,849.32 2015
Alief ISD 14464 Bellaire Blvd 0214985 2015 $2,390.84 HC MUD 249 1 $1,569.96 2015
Alief ISD 2660 Eldridge Pkwy 0154106 2015 $2,132.65 Cinco MUD 12 1 $713.61 2015
West HC MUD 16 2660 Eldridge Pkwy 0154106 2014-15 $1,724.45 Willow Fork Drainage District 1 $451.95 2015
Humble ISD 1284 Deerbrook Mall 0247637 2015 $2,448.95 City of Rosenberg 1 $723.93 2015
Alief ISD 10555 Wesheimer Rd 0086719 2015 $2,339.94 Fort Bend ISD 3 $6,416.32 2015
HC MUD 186 7089 Highway 6 0360983 2015 $436.94 Fort Bend LID 2 1 $214.01 2015
City of Bellaire 4809 Bissonnet St 0025374 2015 $655.55 City of Katy 1 $2,394.58 2014-15 HC MUD 321 10407 North Fwy 0911150 2015 $2,747.69 Harris-Ft Bend MUD 4 1 $1,735.04 2015 Alief ISD 5858 S Gessner Dr 0051400 2015 $2,225.22 City of Meadows Place 1 $1,272.51 2015 Spring Branch ISD 2755 Gessner Dr 0813467 2015 $1,638.77 Brazoria County T/O 4 $21,541.65 2015
City of Houston 2755 Gessner Dr 0813467 2015 $741.63 Dickinson ISD 2 $4,921.98 2015
Humble ISD 142 1st St 0181265 2015 $2,394.12 Woodlands Metro Center MUD 1 $279.15 2015
Clear Creek ISD 1322 Baybrook Mall 0034975 2015 $2,493.86 Woodlands Road UD 1 1 $609.06 2015 City of Houston 1322 Baybrook Mall 0034975 2015 $1,124.16 Magnolia ISD 1 $2,175.87 2015
Klein ISD 4705 FM 1960 Rd 0745342 2015 $1,913.52 Walker County CAD 1 $5,200.47 2015
Humble ISD 4367 Kingwood Dr 0745331 2015 $2,137.07
City of Houston 4367 Kingwood Dr 0745331 2015 $887.28
Summary of Claims
Claims
Houston
Houston
HC MUD 249 20530 Interstate 45 0170596 2015 $1,569.96 Cinco MUD 12 23702 Westheimer Pkwy B 9960182070009914 2015 $713.61 Willow Fork Drainage District 23702 Westheimer Pkwy B 9960182070009914 2015 $451.95 City of Rosenberg 5028 Avenue H 9960180000175901 2015 $723.93 Fort Bend ISD 3221 Highway 6 9960180870011907 2015 $2,389.76 Fort Bend LID 2 3221 Highway 6 9960180870011907 2015 $214.01 Fort Bend ISD 5936 Highway 6 S 9960182030013907 2015 $2,121.35 City of Katy 5000 Katy Mills CIR 541 9960182020051914 2014-15 $2,394.58 Harris-Ft Bend MUD 4 5000 Katy Mills CIR 541 9960182020051914 2015 $1,735.04 Fort Bend ISD 11611 W Airport BLVD H 9960182030016907 2015 $1,905.21 City of Meadows Place 11611 W Airport BLVD H 9960182030016907 2015 $1,272.51 Brazoria County T/O 2625 S Highway 35 Bypass 185 91032031000 2015 $4,843.37 Brazoria County T/O 117 W Highway 332 C 93393846000 2015 $8,470.03 Brazoria County T/O 1830 N Velasco (Highway 288 B) 92062424000 2015 $6,636.71 Brazoria County T/O 10504 Broadway 120 97000810130 2015 $1,591.54 Dickinson ISD 2600 FM 1764 Ste 150 860005486558005 2015 $2,741.06 Clear Creek ISD 153 FM 518 Ste F 860005486558092 2015 $2,388.23 Dickinson ISD 2920 Gulf Fwy S Ste D 860005486558085 2015 $2,180.92 Woodlands Metro Center MUD 1201 Lake Woodlands Dr Ste 2094 1910019380426 2015 $279.15 Woodlands Road UD 1 1201 Lake Woodlands Dr Ste 2094 1910019380426 2015 $609.06 Magnolia ISD 33020 FM 2978 Rd Ste 519 1920015467022 2015 $2,175.87 Walker County CAD 3011 SH 30 West 9950120063525 2015 $5,200.47
Total: $131,653.50
Arlington ISD 1014 Parks @ Arlington #8385 09633472 2014-15 $4,838.68 Arlington ISD 7 $25,843.85 2014-15 Arlington ISD 1108 N Collins S #8327 08138222 2014-15 $3,589.67 Eagle Mtn-Saginaw ISD 1 $7,084.33 2014-15 Arlington ISD 2425 SE Green Oaks # 11, #8379 10676317 2014-15 $2,704.60 City of Azle 1 $1,755.26 2014-15 Arlington ISD 2131 N Collins S #411, #8359 09627138 2014-15 $2,942.28 Carroll ISD 1 $5,130.90 2014-15 Arlington ISD 3006 E Pioneer Pkwy #8323 08138273 2014-15 $2,794.22 Crowley ISD 1 $4,260.40 2014-15 Arlington ISD 4400 Little Rd #311 #8196 09160922 2014-15 $4,288.04 Mansfield ISD 2 $9,833.31 2014-15 Arlington ISD 901 W Pioneer Pkwy #101 #8346 08138249 2014-15 $4,686.36 City of Benbrook 1 $1,699.89 2014-15 Eagle Mtn-Saginaw ISD 1453 N Saginaw Blvd A-110 11669039 2014-15 $7,084.33 City of Burleson 2 $2,365.79 2015 City of Azle 168 Park Pl #8070 09083936 2014-15 $1,755.26 Burleson ISD 2 $4,923.40 2015 Carroll ISD 2140 E Southlake Blvd K, #8371 10749365 2014-15 $5,130.90 City of Cleburne 1 $1,933.51 2015 Crowley ISD 4801 S Hulen St #128 #8335 10544364 2014-15 $4,260.40 Cleburne ISD 1 $3,286.43 2015 Mansfield ISD 5912 S Cooper St #110 #8182 11506539 2014-15 $4,216.85 Johnson County/Hill Coll 2 $1,975.18 2015 Mansfield ISD 900 N Walnut Creek dr #105 #8492 10932437 2014-15 $5,616.46 Ennis ISD 1 $5,193.16 2014-15 City of Benbrook 9393 Benbrook Blvd #8166 10410422 2014-15 $1,699.89 Richardson ISD 5 $10,706.07 2015
City of Burleson 811 NE Alsbury Blvd #400 #8449 10809848 2015 $1,060.74 Burleson ISD 811 NE Alsbury Blvd #400 #8449 10809848 2015 $2,207.48 City of Cleburne 1301 W Henderson St 126-5528-64300 2015 $1,933.51 Cleburne ISD 1301 W Henderson St 126-5528-64300 2015 $3,286.43 Johnson County/Hill Coll 1301 W Henderson St 126-5528-64300 2015 $1,190.39 City of Burleson 130 NW John Jones Dr #8358 126-5525-70175 2015 $1,305.05 Burleson ISD 130 NW John Jones Dr #8358 126-5525-70175 2015 $2,715.92 Johnson County 130 NW John Jones Dr #8358 126-5525-70175 2015 $784.79
Ennis ISD 1011 E Ennis Ave #8199 229727 2014-15 $5,193.16
Arlington
Arlington
Richardson ISD 980 Coit Rd N #8138 99000000216836800 2015 $2,728.03 Richardson ISD 206 Campbell Rd W #8164 99000000214802550 2015 $2,780.22 Richardson ISD 206 Campbell Rd W #8164 99000000214802550 2015 $2,780.22
Total: $85,991.48
Houston County 1243 Loop 304 0019817 2015 $832.17 Houston County 1 $832.17 2015
City of Greenville 2715 Traders Rd 0000G 10535 2015 $1,631.87 City of Greenville 1 $1,631.87 2015 Greenville ISD 2715 Traders Rd 0000G 10535 2015 $3,163.35 Greenville ISD 1 $3,163.35 2015
Tyler ISD 0004601S BROADWAY 98000034550900 2015 $2,195.85 Tyler ISD 2 $4,104.85 2015
Tyler ISD 0001745TROUP 98000034570900 2015 $1,909.00
Total: $9,732.24
Wichita Falls City 3111 Midwestern Pkwy 140 223070 2015 $1,095.00 Wichita Falls City 2 $2,278.00 2015 Wichita Falls ISD 3111 Midwestern Pkwy 140 223070 2015 $1,896.00 Wichita Falls ISD 2 $3,944.00 2015 Wichita County 3111 Midwestern Pkwy 140 223070 2015 $851.00 Wichita County 2 $1,771.00 2015
Wichita Falls City 3201 Kemp 206788 2015 $1,183.00 Cooke County 1 $1,475.00 2015
Wichita Falls ISD 3201 Kemp 206788 2015 $2,048.00 Gainesville Hosp 1 $343.00 2015
Wichita County 3201 Kemp 206788 2015 $920.00 North Central TX Coll Dist 1 $342.00 2015
Cooke County 1501 N Grand 126596 2015 $1,475.00 Lat Rd for Cooke Co 1 $1.00 2015
Gainesville Hosp 1501 N Grand 126596 2015 $343.00 Gainesville City 1 $2,143.00 2015
North Central TX Coll Dist 1501 N Grand 126596 2015 $342.00
Lat Rd for Cooke Co 1501 N Grand 126596 2015 $1.00
Gainesville City 1501 N Grand 126596 2015 $2,143.00
Total: $12,297.00
Midland County 3300 W Illinois Ave #8306 P000012270 2014-15 $588.36 Midland County 2 $1,023.23 2014-15 Midland County 4411 N Midkiff Rd #9936 P000012272 2014-15 $434.87 Lubbock CAD 5 $9,805.57 2015
Lubbock CAD 6002 Slide Rd, Ste D24 #9909 P87570 2015 $2,538.27 Lubbock CAD 8203 Indiana Ave #9916 P87602 2015 $1,966.52 Lubbock CAD 3207 50th St, Ste B #9120 P174671 2015 $2,080.35 Lubbock CAD 5707 4th St, Ste 2 #8307 P87453 2015 $1,560.21 Lubbock CAD 2420 19th St #8316 P160912 2015 $1,660.22
Total: $10,828.80
Weslaco ISD 1025 N. Texas, Ste. 5 W380099120000102 2015 $3,544.11 Weslaco ISD 1 $3,544.11 2015 City of Weslaco 1025 N. Texas, Ste. 5 W380099120000102 2015 $2,135.42 City of Weslaco 1 $2,135.42 2015 McAllen ISD 7400 N. 10th, Ste. C N541099000000211 2015 $3,294.21 McAllen ISD 4 $14,140.31 2014-15 McAllen ISD 2200 S. 10th, St., Unit-62 L170099000001A04 2015 $2,727.00 Colorado County 1 $4,990.26 2014-15 McAllen ISD 1001 S. 10th St. R (1st FL) T545099000000A86 2015 $2,963.56 Copperas Cove ISD 1 $1,522.47 2015 McAllen ISD 4120 Ware Rd., Ste. F M236099000000200 2014-15 $5,155.54 Kerr County 1 $1,064.73 2015
Austin
Austin
Lubbock & Midland
Wichita Falls
Tyler
Tyler
Wichita Falls
Total: $31,213.75
Gray County Tax Office 1820 Hobart 310200210003750000000 2015 $4,490.05 Gray County Tax Office 1 $4,490.05 2015 Potter County Tax Office 2475 W IH 40 B00051409600 2015 $3,572.73 Potter County Tax Office 3 $12,961.30 2015 Potter County Tax Office 1804 E. Amarillo Blvd. B00051409601 2015 $4,158.03 Randall County Tax Office 1 $3,844.37 2015 Potter County Tax Office 372 Westgate Mall B00051409604 2015 $5,230.54 Hutchinson County Tax Office 1 $4,321.84 2014-15 Randall County Tax Office 7306 SW 34th Ave B00051409603 2015 $3,844.37
Hutchinson County Tax Office 600 Main St. P108335 2014-15 $4,321.84
Total: $25,617.56
Grand Total: $307,334.33