Aug 26 (Reuters) - RadioShack Corp’s second-largest shareholder, Standard General LP, is negotiating a rescue package with investors to help the consumer electronics retailer ward off bankruptcy, Bloomberg reported, citing people with knowledge of the matter.
RadioShack shares were up 6.2 percent at 76 cents on the New York Stock Exchange on Tuesday.
The hedge fund is also working with RadioShack's management to help the company avoid a Chapter 11 filing, Bloomberg reported. (bloom.bg/1lcdK8E)
Standard General is seeking to strengthen RadioShack’s cash flow by issuing debt or equity, Bloomberg said.
The hedge fund currently has a 7 percent stake in RadioShack.
The fund is also looking to refinance RadioShack’s $250 million second-lien term loan, Bloomberg reported.
Standard General and RadioShack were not immediately available for comment. (Reporting by Ramkumar Iyer in Bangalore; Editing by Simon Jennings)