Monday, October 6, 2014

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.

No comments: