Salus Capital Partners has offered RadioShack Corp. $500 million in bankruptcy financing, according to people familiar with the matter, a move that could increase the lender’s influence if the struggling retailer ends up in chapter 11, the Wall Street Journal reported today. RadioShack hasn’t said that it plans to seek bankruptcy protection, but the Fort Worth, Texas-based consumer electronics retailer is running out of cash after posting losses in each of the last 11 quarters. In September, it warned that it could be forced into bankruptcy court if it couldn’t raise new funds or get relief from lenders, including Salus, that are blocking its effort to close hundreds of stores. Salus’s unsolicited offer for a debtor-in-possession loan expires on Thursday. The new debt would replace a $585 million financing package the company first obtained in late 2013, some of which consists of credit lines dependent on the value of RadioShack assets.
