RadioShack reaches US$590m refinancing deal

New York

RADIOSHACK Corp, the electronics chain trying to stave off bankruptcy, reached an agreement with a consortium led by Standard General LP to refinance about US$590 million of loans to re-stock ahead of the holidays, a person familiar with the matter said.

Standard General, a New York-based hedge fund, will lead a group of lenders to refinance debt outstanding under a US$535 million asset-backed revolving credit line from GE Capital, the lending arm of General Electric Co, said the source, who asked not to be identified because the negotiations are private. The pact also includes refinancing of some additional debt, the source said.