Tuesday, August 26, 2014

"Standard General Said to Explore Rescue Financing for RadioShack"

"Standard General LP, one of RadioShack Corp.’s largest shareholders, is negotiating a possible rescue package with investors intended to allow the retailer to stave off a bankruptcy filing, according to two people with knowledge of the talks. The hedge fund that is also orchestrating a lifeline for American Apparel Inc. is seeking to bolster RadioShack’s cash through the issuance of debt or equity, said the people, who asked not to be named because the discussions are private. The firm is also working with RadioShack’s management to craft a plan that would avoid Chapter 11, the people said."

1 comment:

Anonymous said...

It's a last ditch effort that may result in an equity issuance, if not chapter 11. But the stock might delist before any, and what's the point of an offering then. What's telling is that nobody wants to take rsh private.