Skip to content
Subscriber Only

RadioShack Rescue Package Dismissed as Stopgap Measure

Updated on

RadioShack Corp.’s rescue financing package, announced at the end of last week, was dismissed by investors and analysts who say it’s only a stopgap measure that waters down the stock.

RadioShack’s shares fell 12 percent to 87 cents in New York today in the first trading day since the company said a group led by Standard General LP will refinance a $535 million credit facility to stave off bankruptcy. The agreement includes $120 million that RadioShack said it expects to convert to equity later.