RadioShack Corporation Up As Hedge Fund Broadcasts Potential Bailout

gained about 40 percent Friday after a hedge fund said a bailout for the beleaguered electronics retailer might be in the works. Soohyung Kim's Standard General Capital fund said it drafted a plan to boost RadioShack's near-term liquidity for the holiday shopping season, although Kim cautioned there is "no assurance" of a deal. Under the plan Standard General would acquire part of the current debt of RadioShack, which warned recently it may seek bankruptcy protection. The action "could be the first step" for a broader recapitalization, Standard said in a filing with the Securities and Exchange Commission that also disclosed a 9.8 percent stake. The broader plan, which could be completed by early 2015, would see Standard acquire convertible preferred shares, that could carry board nomination rights result in changes changes to RadioShack's structure, Standard General said. Kim, who recently acquired a 10 percent of

and sought unsuccessfully to obtain a stake in the money-loosing but historic Rye Playland amusement park near New York City, agreed it won't seek control of RadioShack until at least June 12. RadioShack traded recently at $0.99 per share, up 22 percent from Thursday's close.