Report: RadioShack in deal for new financing package

New York -- RadioShack Corp. has agreed to a financing packaging arranged by its biggest investor, hedge fund Standard General, that would help ease the retailer’s cash crunch as it heads into the holiday selling season, The Wall Street Journal reported.



According to the report, Standard General will lead a consortium of lenders to provide RadioShack with $585 million of funds that will boost RadioShack’s liquidity by at least $120 million. The package will fund RadioShack’s letters of credit through loans that could later be converted to equity The deal replaces a more restrictive package from GE Capital and could go into effect as soon as Oct. 3. It also reportedly includes refinancing of some additional debt.



Standard General holds about 10% of RadioShack’s shares.