Investor Mulls RadioShack Rescue Plan
The hedge fund Standard General owns about 9.8 percent of RadioShack along with a 44 percent stake in another troubled retailer, American Apparel (NYSE: APP).
Recently, Standard promised American Apparel $25 million of support and pushed it to restructure its board of directors.
RadioShack burned through $48 million in the most recent quarter; the company has only $62 million of cash on hand. The investment bank B. Riley last month cut its price target on RadioShack to zero.
Standard General is also seeking to refinance RadioShack's $250 million second-lien term loan that's held by Salus Capital Partners LLC and Cerberus Capital Management LP, Bloomberg said, citing unnamed sources
RadioShack jumped 1.4 percent recently to $0.73.
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.