RadioShack announced it had stuck an agreement with Standard General and others to replace its existing ABL facility and receive $120 mln in cash to collateralize letters of credit; maintain Sell
B. Riley & Co. notes, RSH stuck an agreement with Standard General and others to replace its existing ABL facility and receive $120 mln in cash to collateralize letters of credit. Although this frees up some borrowing availability and should help liquidity optics for holiday inventory build, there didn't seem to be any assurances that vendors were supportive. Furthermore, Salus Capital does not seem to have budged on covenants, which means widespread store closings are still not permitted. Given the magnitude of ongoing losses, the significant potential dilution, and some of the language in co's release, firm thinks the announced agreement simply pushes a likely bankruptcy filing out until after the holidays.