RadioShack offered $500M in turnaround funding

RadioShack (NYSE:RSH) has been offered $500 million in turnaround financing from Salus Capital if it agrees to file for bankruptcy.

The flailing electronics retailer has not yet stated that it will file for Chapter 11 but is facing serious debt after losses for 11 straight quarters, reported CNBC.

Salus' current debtor-in-possession loan expires on Jan. 15.

Last year, RadioShack announced that it would be forced to seek bankruptcy protection if it failed to raise new capital from lenders. In addition, the company attempted to close 1,100 stores to focus on more profitable locations, but the move was blocked by its term lenders. At the time, Salus Capital accused RadioShack of breached covenants on a $250 million term loan. RadioShack is now contesting the claims. Salus Capital is attempting to get a bigger piece of the retailer's debt in exchange for agreeing to back the company's store-closing plan.

Former Chief Marketing Officer Jennifer Warren announced she was leaving the company in December. Warren was the second major executive to leave the company after CFO John Feray resigned in September.

For more:
-See this CNBC article

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