Electronics Chain, RadioShack to Get $535 Million Credit Line

Electronics Chain, RadioShack to Get $535 Million Credit Line The electronics chain, RadioShack Corp. is making big efforts to keep off bankruptcy. A group which is led by Standard General LP is refinancing the chain with $535 million credit facility so that it can restock inventory just as the holidays are about to set in and the shopping season will kick off soon.

The hedge fund based in New York, led a group of lenders which acquired the asset-backed revolving credit line from General Electric Co.'s lending arm and settled to relax the terms of borrowing.

The refinancing will give RadioShack entrée to more of cash and a better flexibility as the existing debt agreement limits the amount of money which it can draw from the revolver. This is as per the filing of December 13, with the U. S. Securities and Exchange Commission. This action could also give the retailer a scope to shut down a big number of stores that are underperforming and will help the company to save greater amount of cash.

Earlier in the year, the creditors of RadioShack did not agree to a plan of shutting down 1,100 stores which forced the retailer to limit the number of closings to a meagre 200.

For the retailer Standard General came as a budding saviour in August, when it was reported that the hedge fund engaged in talks for financing. The same firm has earlier organized a salvation for American Apparel Inc. which was another retailer in trouble.