RadioShack Corporation Gets Liquidity At A Cost

Shares of RadioShack Corporation RSH, which were halted for trade on Friday, are poised to open lower on news of a restructuring of debt for equity with Standard General and other lenders.

While the restructuring will provide a much needed liquidity boost, the $120 million investment is expected to be converted in equity, representing roughly 50 percent of the company shares.

The dilution effect of the deal appears to be weighing on the shares, with the stock trading down 8 percent in the pre-market at $0.91.