Radio Shack Loan Discussion On The Harbinger (Salus) Earnings Call $RSH

A correspondent writes,

From the Harbinger Group earnings call today. Note the focus on the collateral of the loan. Not surprising, but that is the “no exit” issue for all parties.

Charles Frischer, LF Partners - Analyst
Got it. That's great. And then one last question if I could. How are you thinking about the credit quality at Salus? I know RadioShack has been in the news and some other things but how do you guys think about the credit quality there?

Omar Asali, Harbinger Group Inc. - President
Obviously you have seen a lot of articles about that and we're going to stay away from the different comments that are out there. Suffice to say we are capital preservation guys. That's how our opcos think.

We are also in the case of Salus asset-based lenders. So this is not necessarily cash flow lending and we are very focused on the collateral value there. Very focused on what is happening with that company.

That is a substantial loan. And the Salus team is very engaged with RadioShack, engaged with others to make sure that our position is protected and to make sure that we are focused on it from a capital preservation standpoint. So I think at this point we have nothing to discuss other than what you have read in the public domain but I assure you there is tremendous focus on making sure that our loan is protected.

I didn't realize that the Harbinger Group was really Zapata Corp. The CIA codename for the Bay of Pigs Invasion was "Operation Zapata".