Tuesday, October 26, 2021
79.1 F
Fort Worth

Report: Lender drops out of negotiations with RadioShack

🕐 1 min read

A potential lender to RadioShack Corp. has dropped out of negations with the company to take over a $140 million loan, according to a Bloomberg report, citing people with knowledge of the negotiations. Monarch Alternative Capital LP, run by Michael Weinstock, was leading talks with two other hedge funds to acquire the asset-backed senior loan and renegotiate the terms, according to the report. RadioShack is seeking to refinance the debt with better terms, according to the report, giving the Fort Worth-based company time to implement a turnaround plan. In a filing in September, RadioShack said refinancing its debt was key to avoid a cash crunch and possibility to bankruptcy by the Fort Worth-based electronics retailer.

In October, RadioShack, agreed with a group led by Standard General to refinance a $535 million credit facility to help it restock inventory before the holidays. Standard General, a New York-based hedge fund, led a group of lenders that acquired the asset-backed revolving credit line from General Electric’s lending arm and agreed to loosen its borrowing terms. Standard General and Litespeed Management also agreed to provide $120 million to cash collateralize letters of credit for the company. The retailer said it expects those funds to be converted into equity later. – Robert Francis, rfrancis@bizpress.net This report contains material from Bloomberg.   

Robert Francis
Robert is a Fort Worth native and longtime editor of the Fort Worth Business Press. He is a former president of the local Society of Professional Journalists and was a freelancer for a variety of newspapers, weeklies and magazines, including American Way, BrandWeek and InformatonWeek. A graduate of TCU, Robert has held a variety of writing and editing positions at publications such as the Grand Prairie Daily News and InfoWorld. He is also a musician and playwright.

Related Articles

Our Digital Sponsors

Latest Articles

Texas Rangers
Fort Worth Business Press Logo
This advertisement will close in
Click here to continue to Fort Worth Business Press

Not ready to subscribe?

Try a few articles on us.

Enter your email address and we will give you access to three articles a month, to give us a try. You also get an opportunity to receive our newsletter with stories of the day.

This field is for validation purposes and should be left unchanged.

Get our email updates

Stay up-to-date with the issues, companies and people that matter most to business in the Fort Worth.

  • Restaurants
  • Technology
  • and more!

FWBP Morning Brief

FWBP 5@5

Weekend Newsletter

  • Banking & Finance
  • Culture
  • Real Estate