NEW YORK (TheStreet) -- Shares of RadioShack Corp. (RSH) are skyrocketing, up 17.08% to $1.09 in morning trading, after the company said it is working with creditors and other parties including Standard General LP and UBS (UBS) for more capital and avoid bankruptcy after posting another disappointing quarter in its earnings report today.
Swiss financial services firm UBS and hedge fund Standard General are reportedly working on a loan deal to raise funds for the consumer electronics retailer to refinance outstanding liabilities of about $535 million.
Another possibility is a sale of the company, RadioShack said today, noting that if restructuring efforts fail, it may be required to seek bankruptcy.
Watch the video below for a closer look at RadioShack's troubles:
RadioShack reported a second quarter net loss of $137.4 million, or $1.35 a share, compared to the loss of $52.2 million, or 51 cents, one year ago, and below what analysts had estimated at a loss of 66 cents a share.
Revenue for the quarter fell 22% to $673.8 million from the same quarter of last year, affected by declining sales of mobile phones.
Separately, TheStreet Ratings team rates RADIOSHACK CORP as a Sell with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation: