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Investor Mulls RadioShack Rescue Plan

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RadioShack's (NYSE: RSH) largest shareholder is mulling whether to put together a so-called rescue fund to bail out the troubled retailer from likely bankruptcy, according to Bloomberg news.

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.

Posted-In: News Rumors Financing

 

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