RadioShack mulls $585 million financing package from UBS, Standard General: WSJ
(Reuters) - RadioShack Corp RSH.N is evaluating a $585 million financing package led by UBS AG UBSN.VX and hedge fund Standard General LP as the U.S. electronics retailer tries to avert bankruptcy, the Wall Street Journal reported, citing people familiar with the matter.
UBS will coordinate $325 million of commitments and Standard General will arrange $260 million in financing, replacing a $585 million loan and credit facility from GE Capital, a unit of General Electric Co (GE.N: Quote), the financial daily reported.
The Fort Worth, Texas-based company said on Thursday that it may file for Chapter 11 bankruptcy protection in the United States if its cash situation worsened.
The new loans, a last-ditch effort that could still fall through, would loosen some restrictions in the terms of GE Capital's loan, giving RadioShack quicker access to cash through the holiday season, WSJ reported.
RadioShack, UBS and Standard General, which has a stake in the electronics retailer, could not be immediately reached for comment.
RadioShack, founded in 1921, was once the go-to place for the electronics, but has done little to protect its turf or transform itself as rivals such Amazon.com Inc (AMZN.O: Quote) and Wal-Mart Stores Inc (WMT.N: Quote) draw shoppers away.
RadioShack tried to close 1,100 stores this year, but lenders did not agree with the plans, forcing it to curb the closings to 200 stores a year.
The plan from Standard General and UBS would not require widespread store closures and, instead, would push for an acceleration of the renovations sought by the company, WSJ reported.
RadioShack reported its tenth straight quarterly loss on Thursday. It runs over 4,400 company-operated stores in the United States and Mexico and over 1,200 dealer stores in 25 countries, employing a total of about 27,000 people. Continued...