Salus Capital Partners is willing to provide financially-troubled Radio Shack with $500 million in a debtor-in-possession loan, the Wall Street Journal reports.
The loan offer, which expires on Thursday, would replace a $585 million financing package accepted in 2013 by RadioShack. It would also grant Salus Capital increased control over the bankruptcy filing procedures of the consumer electronics company, which has been public about its financial woes.
However, RadioShack has not announced official plans for Chapter 11 bankruptcy.
Following news of the possible debtor-in-possession deal, shares for RadioShack went up approximately 5 percent in after-hours trading, according to CNBC.
"We are working to address our challenges head-on," chief executive Joseph C. Magnacca said late last year, after announcing the company was planning on closing 1,100 locations.
Neither of the companies has confirmed plans to approve the deal, which went public this Monday
"You could poll any American and they've probably heard of RadioShack," SierraConstellation Partners chief executive Lawrence Perkins said, according to the New York Times. Perkins believes the RadioShack brand will lively live on in some form.
"That's worth something to someone."
