RadioShack Said to Seek Lender Deal After Default Claim
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RadioShack Corp. will continue seeking an amendment to its credit agreement after lenders claimed the retailer defaulted on a $250 million loan agreement so that it can implement a turnaround plan, according to two people with knowledge of the matter.
The company will ask Salus Capital Partners LLC to renegotiate terms of its loan to allow it to close more underperforming stores, said the people, who asked not to be named because the matter is private. Salus, a unit of Harbinger Group Inc., said in a Dec. 1 letter that it would demand immediate payment of its loan after claiming terms of a credit agreement were breached by a $585 million rescue financing deal in October.