Facebook Vice President David Marcus is the face of the company's Libra digital currency, but the original driving force was a 26-year-old female corporate-development...Technologyread more
Amazon's new policy for account suspensions doesn't go far enough to protect sellers from potentially unfair and wrongful suspensions, merchants say.Technologyread more
There is no end in sight to the Boeing 737 Max grounding after two fatal crashes, prompting airlines to rethink their growth plans.Airlinesread more
After a year of flooding, Midwest farmers face a stifling heat wave that's spreading across the U.S.Weather & Natural Disastersread more
On Saturday, Disney's Marvel Studios announced its upcoming slate of superhero films during a panel at San Diego Comic-Con.Entertainmentread more
Moving lots of data to a public cloud over the internet can take months or years. CNBC got an inside look at how AWS transfers data to the cloud for its clients.Technologyread more
A quarter of the S&P 500 companies report earnings next week, and that could buffet the market as investors await the July Fed meeting.Market Insiderread more
Iran's Revolutionary Guard claims a British tanker it still holds, Stena Impero, failed to follow international maritime rules.World Newsread more
"It troubles me that the most important political office in the world is becoming the face of racism and exclusion," Kaeser said in a Twitter post.Politicsread more
Silver's rally could be losing its shine after the precious metal reached its year-to-date high, futures experts warn.Futures Nowread more
Some 40% of Americans would struggle to come up with even $400 to pay for an emergency expense. Just how are so many Americans so short on cash? Blame debt.Personal Financeread more
RadioShack's credit default swap spreads reached their widest on record Thursday, ahead of a critical decision over whether the electronics retailer breached a covenant with one of its key lenders.
The International Swaps and Derivatives Association's Credit Derivatives Determinations Committee met for the second consecutive day on Thursday, to determine if a credit event was triggered by a refinancing agreement RadioShack entered with Standard General in October.
The committee failed to reach a decision and agreed to reconvene on Friday.
According to Fitch Solutions, five-year credit default swaps for RadioShack have widened 93 percent since the beginning of December. When credit default spreads widen, it indicates that more people are betting on the firm to default on their debt.
"Mounting market concern for RadioShack comes amid speculation over whether a failure to pay credit event has occurred," said Fitch Solutions director Diana Allmendinger. "If ISDA determines that a credit event has indeed taken place, this would trigger a payout on CDS contracts referencing RadioShack."
The lender in question is Salus Capital, which is arguing that RadioShack breached the terms of its $250 million term loan facility when it entered into an agreement with Standard General. Salus is demanding immediate payment.
During its earnings call on Thursday, RadioShack CEO Joe Magnacca reiterated that the company will contest the allegations, which it has called "wrong and self-serving."
The electronics chain on Thursday reported a larger-than-expected loss for the third quarter, with same-store sales and revenue coming in short. Its biggest hit came from its mobile business, which struggled, in part, due to "constrained" volume on items including Apple's latest iPhone models. Mobile makes up about half of RadioShack's revenue.
On a conference call, Magnacca outlined steps to save $400 million annually, including trimming $105 million in marketing spending and $90 million from potential store closings.
The planned savings from store closings, Magnacca noted, will depend on lender approval. Earlier this year, lenders blocked RadioShack's plan to close 1,100 stores. The company said Thursday it has closed 175 stores so far this year.
In a note following RadioShack's earnings report, Standard & Poor's said it still expects the electronics chain to incur significant cash burn and for liquidity to remain weak, with "very limited liquidity sources at this point."
"To achieve the cost savings from store closures, the company must first gain approval from secured lenders, who have sent a notice of default and acceleration of that loan to the company," S&P said. "RadioShack does not agree with the claims and is contesting them, but gaining the necessary consent from those lenders could be difficult."
S&P said it views a default as "very likely" in the near term, unless RadioShack raises additional liquidity or significantly improves its operating trends. The ratings firm added that a restructuring or change in terms for its existing obligations are also "tantamount" to a default.
(UPDATED: This story was updated to provide the status of ISDA committee's meeting and to add comments from S&P.)