Linebarger Goggan Blair & Sampson announced Wednesday that the law firm's bankruptcy team has helped communities across Texas collect an estimated $2.2 million in property taxes from once thriving electronics retailer Radio Shack at it works its way through Chapter 11 bankruptcy proceedings. The amount is reportedly the full sum owed for 2015.
“We were concerned that the company might get away without paying its property taxes for 2015, which would’ve been terribly unfair to the communities anticipating that revenue, not to mention every other taxpayer in those communities,” said Linebarger Goggan Blair & Sampson bankruptcy partner Beth Weller.
Among the biggest beneficiaries was Tarrant County, which will receive nearly $1 million this week on top of $647,000 the county received because of some earlier work by the law firm.
"Radio Shack has significant real estate holdings in in Tarrant County, where it has a large distribution center," Weller said.
Harris County will collect $112,000, Dallas County will collect $108,000 and Bexar County will get an estimated $76,000. Several other counties, cities and school districts will split the remainder. Some original claims were higher than the amount paid, however those claims were estimates and the actual 2015 taxes owed were somewhat lower.
The law firm first got involved in March last year when Radio Shack filed a motion with the bankruptcy court to sell its assets. The firm objected and negotiations began. Radio Shack initially offered to pay only a portion of the taxes it owed but the law firm demanded full payment.
"Ultimately, the court ordered Radio Shack to work with us to resolve our differences," said Weller. "These negotiations resulted in a plan of reorganization that enabled us to collect the full amount owed to each community. This is a win not only for the local governments, but for the majority of their constituents who pay their taxes on time and in full."
