RadioShack’s plans could change, people familiar with the matter have said, and if it does file for Chapter 11 protection, it may tap a lender other than Salus to fund its operations. But offering the loan fits the playbook for Salus, a Needham Heights, Mass.-based startup lender founded in 2011.
Salus has made a name for itself backing struggling retailers and then lending in debtors’ bankruptcies if it comes to that. In December, Salus provided a $20 million so-called debtor-in-possession loan to Delia’s Inc. as bankruptcy financing, after providing a $30 million pre-bankruptcy loan to the retailer in 2013. The lender has made similar moves with women’s clothing seller Dots LLC and others.
“They know what they’re doing in the context of consumer products, retail and—generally–insolvency, and it’s a core part of their strategy to be able to compete for those types of credits,” said Lawrence Perkins, chief executive of restructuring advisory firm SierraConstellation Partners LLC. “They’re not afraid of the bankruptcy world.”
No Wonder RSH Didn't Tank
RadioShack is preparing for a potential Chapter 11 bankruptcy filing next month, the WSJ reported late Wednesday. Salus lent it money a year ago, and has fought RadioShack in its attempts to close stores. But with bankruptcy close, Salus has offered $500 million in bankruptcy financing, The Wall Street Journal has reported. That's money the company could use for operations during a bankruptcy proceeding. Salus's proposal currently expires Thursday night, though such deadlines are typically negotiable.
RadioShack's plans could change, people familiar with the matter have said, and if it does file for Chapter 11 protection, it may tap a lender other than Salus to fund its operations. But offering the loan fits the playbook for Salus, a Needham Heights, Mass.-based startup lender founded in 2011
half way to 36 cents then what happens is anybody's guess
only 120,000 shares sold pre market on this news can that be right? Volume says someone doubts the story
seems like someone finds value in the shares at 30 cents, still very light volumn
rsh has been ticking up most of pre market why would this be? shorts covering?
I nibbled on a few shares at 28 cents ,wanted to wait until morning but was confused by the utter lack of volumn
Which article states delisting? Identify it please. Stand behind your spoutings.
Where did you read of delisting? I have not read that in any of the articles.
On December 15, 2014, the RadioShack Corporation (“RadioShack”) entered into an agreement for advisory and interim management services with FTI Consulting. In connection with this agreement, RadioShack appointed Carlin Adrianopoli as Interim Chief Financial Officer.
Effective with the appointment of Mr. Adrianopoli, Ms. Holly Etlin will no longer serve as Interim Chief Financial Officer of RadioShack.
Carlin Adrianopoli, 39, has been a senior managing director in the FTI Consulting Corporate Finance/Restructuring practice since 2010 and joined FTI in 2002. Mr. Adrianopoli has more than 16 years of experience serving as financial advisor and providing interim management and performance improvement services to corporations, various creditor classes, equity owners and directors of underperforming companies. Mr. Adrianopoli’s services to RadioShack are billed by FTI Consulting. He is not separately compensated by RadioShack for his services as Interim Chief Finan
The company said in the filing that it had $62.6 million on hand as of Nov. 1--$43.3 million in cash and $19.3 million in borrowing availability--a thin cushion for a sprawling chain with about 4,300 company-operated stores in North America.
Close to 43 cents per share on hand without borrowing, right?
Riddle me this, why such light volume after this news? Isn't volume seen as a way to confirm rumors, if so not many seem to believe this story, ot they have already prepared for it.