Liquidity Discussion From Radio Shack 10-Q $RSH

A correspondent asks, "would a rational person bet on an improvement in trend?"

"Our ability to maintain sufficient liquidity for the next 12 months to fund our operations and execute our strategic turnaround plan is contingent on improving the current trend in our operating results. This plan anticipates that sales and gross margins will improve over the next 12 months in the mobility and retail areas of our business due to the initiatives detailed above…. If the current trend in our operating results continues or further declines, we will be required to borrow additional amounts under our 2018 Credit Agreement, make further reductions in capital expenditures and make additional reductions in our operating cost structure, including in our employee headcount, marketing and rent… Some of the actions we may elect to take if trends do not improve may require lender consent under our 2018 Credit Agreement."