RSH Bond Trades Below 13 Today
Just an oddlot, but still - funny on a day that the stock is up. I don't think people understand that the "loan offer" is for a debtor-in-possession loan in bankruptcy.
Meanwhile, Debtwire is reporting that two sources have told it that RadioShack hired a claims administration agent called Prime Clerk to help it prepare for a Chapter 11 filing.
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5 comments:
"funniest thing all month is people calling the $RSH DIP a lifeline and noting the stock being up b/c of it"
I agree with the statement above. However, there was clearly a short squeeze this morning. So, aside from the dumb money entering, I wonder if there might also have been smart shorts who bought shares, increased the market value of their maintained, and then borrowed more shares as the RSH price increased and more shares became available to borrow.
Salus is clearly in the fulcrum position. My understanding of their offer was that RSH has the opportunity to voluntarily file for bankruptcy (and receive the DIP financing package), or else Salus would file an involuntary petition on Thursday evening. The only way SG could further delay a credit default event from inevitably occurring would be to purchase Salus' debt for a hefty premium.
CP, is there a link for the Debtwire report / has anyone else reported this news?
New low in the bonds today.
How can they keep this going?
WSJ reports "RadioShack Prepares Bankruptcy Filing:" http://www.wsj.com/articles/radioshack-prepares-bankruptcy-filing-1421279360
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