A Reuters news story reports cash-strapped electronics retailer RadioShack Corp has reached an agreement with a consortium led by its largest shareholder Standard General LP to refinance about $590 million of loans to re-stock ahead of the holiday season. The Reuters article cites information obtained from a Bloomberg story.

The New York-based hedge fund will lead a group of lenders to refinance debt outstanding under a $535 million asset-backed revolving credit line from GE Capital, the lending unit of General Electric Co, Bloomberg said.

RadioShack said last month it may need to file for bankruptcy protection if its cash situation worsens. The company said it was also exploring other options, including a sale or an investment, and liquidation as the last resort.

Last week, Standard General said it was in talks to improve RadioShack's cash position ahead of the crucial holiday season. The hedge fund also raised its stake in RadioShack to 9.8 percent from 7.08 percent, becoming the company's largest shareholder.

To view the Reuters story, click here.