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RadioShack Wins Final Approval of Chapter 11 Plan

The former RadioShack RSHCQ -11.76 % won final court approval of its chapter 11 plan Wednesday after brokering key settlements with lenders that paved the way for the former electronics retailer to secure a judge’s signature on the proposal.

Following a hearing at the U.S. Bankruptcy Court in Wilmington, Del., Judge Brendan Shannon said he would sign off on both the settlements and the chapter 11 plan, which distributes proceeds from the company’s liquidation to its creditors.

“This has been a very challenging case,” he said. “There were issues that could have derailed the case, frankly, any number of times.”

Burdened with more than $1 billion in debt, RadioShack filed for bankruptcy protection in February and shut down or sold off almost all of its 4,000-store chain. The company, which helped usher in the era of consumer electronics, had suffered a long decline brought on by the advent of digital technology as well as competition from newer, online electronics retailers.

Under its chapter 11 plan, the corporate remains of what was once RadioShack...