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.
New Zealand News
- Tesla offering new discounts & perks in China amid negative press
- Electric Vehicle Council slams Victoria Government for proposed punitive mileage tax on electric cars
- Chinese EV brand Ora unveils VW Beetle-inspired electric car Punk Cat
- Swapping personal car for e-bicycle saved over $50,000 in just 7 years: San Francisco woman
- Hyundai Motor Corp to create ultra-fast EV charging network E-pit in Korea
- Tesla pockets roughly $101 million in profit from sale of some of its bitcoins
- Norway’s ICE car sales decline as buyers making shift to EVs
- Pursang launches Retro-inspired E-Track Motorcycle for Euro 14,449 in Netherlands
- ElectReon successfully tests dynamic wireless EV charging system on public road in Sweden