Covers all bills incurred since Chapter 11, preserves 50,000 jobs AND provides more cash than shut-down.
Sorry, haters, you lose again.
CNBC has more here: https://www.cnbc.com/amp/2019/01/09/eddie-lampert-reportedly-submits-revised-bid-of-roughly-5-billion-to-save-sears-from-liquidation.html
Eddie wins. Fix
Eddie might really win this. He might have strategically depleting the inventory to worthlessness all along to make the company as worthless to Liquidators as possible. Sears has also deliberately been leaving the unsecured creditors out of all negotiations so far, which has them on the warpath. Judge Drain has had his thumb up his a-- through the whole process and had no idea it was this haphazard. Things might have seriously have to start over from scratch.
@ang 70 cents on the dollar is high for a liquidator.
"Covers all bills incurred since Chapter 11, preserves 50,000 jobs AND provides more cash than shut-down."
.. Not terms put into his bid. Unless put in writing he would not even be obligated to preserve any jobs in his new; private; company. [IMO]
Does NOT cover all bills incurred since Chapter 11. Probably includes "some" utility bills such as ELECTRIC that Sears is already obligated to pay under Chapter 11 .. EXCEPT .. when it is administratively insolvent ... AND only utility bills incurred post BK. Technically all utility and ALL creditor bills are owed by a company EVEN in bankruptcy. However; there are only x$ to pay AND ONLY the Corporation / DIP is expected to pay.. until x$ is depleted. [Can't pay more than you have]. Pre-Bankruptcy non secured creditors INCLUDING utilities; are paid ONLY after secured creditors.
To keep the lights on the utility companies the creditor asks a judge to stipulate that the utility be dis-allowed to cut-off service. A judge typically; as was in this case; provides such a ruling with a condition that the debtor pays for all POST BANKRUPTCY utility costs; and should the debtor fail to honor this obligation may have utilities cut-off upon subsequent hearings. It is possible a utility company be owed $1 million pre bankruptcy which never gets paid off at all; and $10 thousand post bankruptcy for which the debtor is obligated to pay.
If a company under bankruptcy becomes administratively insolvent it may not be able to pay EVEN post bankruptcy fees incurred; which in this example would include both the $10 thousand for electric POST-bankruptcy; and the $1 million PRE-BANKRUPTCY claim which would also remain unpaid. Most likely ESL has included in his bid funds that would pay the POST bankruptcy electric and some other POST bankruptcy fees; but definitely not sufficient funds to pay ALL POST bankruptcy vendor fees; and most likely NO pre-bankruptcy unsecured creditor claims at all.
@qyy - Any party involved in this fiasco is going to portray themselves as sympathetic to the workers and "in favor of saving jobs." However, the truth is that the final decision will be based solely on which proposal provides the most money to be passed around. Make no mistake, it is always about the Benjamins!
What are the creditors best chance of outbidding Eddie. Head the judge is in favour of saving jobs.
Eddie wants the real estate. All Sears and KMart stores will be closed eventually. Most of the $4.6 Billion bid was debt forgiveness, which we already know the creditors won't accept because it's just Eddie tearing up the IOU's he wrote to himself. The creditors' best bet is still in liquidation.
he has no intentions of saving the company only lining his pockets and slowly liquidating more stores
wow delusional much OP? not a hater just someone who got a better job because I saw the handwriting on the wall. liquidators will still outbid him
The downside of my Sears store closing is that it will only free up 9 or 10 parking spaces at the mall.
Sears could only survive if they bought a chain of 9 convenience/gas stores in Montana. Like Schwartz did.
Realists....not haters....
We lose?????
The losers are the thousands of employees that lost their jobs during this liquidation process.
The losers are the loyal customers that have been alienated by Eddie's trashing of Sears and K Mart.
The losers are the vendors that have been waiting for payment for product delivered to Sears and K Mart.
These are the true losers out of this whole debacle.
All due to the incompetent "leadership" of Eddie Lampert.
The store I work at closes it's doors next week and I am looking forward to my max severance package. Eddie do me a favor and keep the dumpster fire going just a few more weeks!
" A fool and his money are soon parted"
Eddie can spend his money however he sees fit....but it is readily apparent that Sears Holdings is nothing now but a money pit.
Hundreds of millions of dollars in loans to Sears Holdings just in the past few months alone with nothing positive to show for it.
The money losses are only increasing.
If he does, big f$*#ing deal. If customers aren’t coming in the door, what’s the point.
Even if Eddie wins the auction, what difference does it make?
He is the one responsible for the mess the company is in now....
All it is doing is kicking the can down the road and delaying the inevitable liquidation.
The 425 stores going forward would include K Mart and Sears.....so Sears would probably have 200 to 250 stores remaining open out of this.
Eddie will have to spend huge sums of money to remodel worn out stores, regain trust of vendors, get customers back into the stores and stop the money bleeding losses.
I don't see any sort of recovery from this mess that Eddie himself created.
The NOLs are worth a fortune. Once he slowly liquidates the stores and is left with the profitable Kenmore, Diehard, Innovel, Parts Direct he can use the NOLs.
Ultimately some employees in certain areas of the company won’t be dumped as opposed to a complete shutdown. Those that still work there will have more time to locate new jobs, retire etc.
Liquidaters will bid up to 70 cents on the dollar so to 6 billion
Do we know any info on how much liquidators are bidding or how many of them they are?
@X3QRudj-hio Which he isn't going to do at all. He'll just keep closing the rest of the stores as he sees fit and make it up on the real estate sales.
I agree, Eddie must take his opportunity to modernize and revamp the brands or else nothing changes
Even if he wins how is he going to start profiting. No one shops at sears and even during the holidays not many people shopped in store. Wake up, he will be in more debt. With just 425 stores he needs to invest money to make them up to date. Old fixtures, tables falling apart, billions of paper signs, come on and wake up. He didn't invest in stores since he took over and if he wants to improve the image it will cost millions per store to get updated.
See? Haters are already hedging their bets.
Go Forward is going to happen. Haters lose again.
Sears is not saved from liquidation. They are saved from immediate liquidation. Its back to the transformation project, which is slow methodical liquidation. 505 go forward has already been reduced to 425. Soon that number will also be reduced and so on.
It will be accepted, but doesn't mean he'll be outbid in the auction.