WSJ: "RadioShack Lifeline Only Buys a Little Time" $RSH
Best WSJ article on the negotiations.
"RadioShack executives in recent weeks discussed a more substantial restructuring with lenders including Salus Capital Partners LLC but opted for a stopgap plan, fearing those negotiations weren’t moving quickly enough to free up cash ahead of the holidays"Key detail:
"RadioShack had less than $100 million available under its cash reserves and credit line by the time its board agreed to the financing deal, a person familiar with the matter said, down from about $180 million on Aug. 2."That means they burned $80 million in two months.
People who bought in the pre-market on Friday morning found out that the details weren't as good as they thought.
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