RadioShack Investor Confirms Restructuring Talks

May buy up debt and fund chain through holidays
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Hedge fund Standard General has confirmed that it is exploring various options with RadioShack to help finance the struggling chain through the holiday season.

Fort Worth, Texas – Hedge fund Standard General has confirmed that it is exploring various options with RadioShack to help finance the struggling chain through the holiday season.

The investment group said in a federal filing that it and other unnamed investors may buy out the retailer’s loans and provide it with working capital as it gears up for the all-important fourth quarter, and would then pursue a broader recapitalization of the company early next year.

Standard General and investment bank UBS had been identified in published reports as potential white knights who were working on a $585 million recapitalization package.

The hedge fund indicated in the filing that it holds a dominant 9.8 percent position in RadioShack shares, and said it would refrain from any acquisition or wholesale restructuring of the business prior to June 12, 2015.

RadioShack’s stock price soared on news of the talks, rising more than 28 percent at post time to over $1.

Earlier this month the company reported a $137 million net loss for the second quarter and acknowledged it faces possible bankruptcy as its burns through its cash reserves, which had dwindled to $30.5 million. 

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