the announcement today of the $200million letter of credit from eddie is proof that sears cannot secure any other funding. The revolving facility is tapped out, the banks wont lend, they cannot borrow against the inventory, it would take too long to sell real estate to seritage (and it could be clawed back), there have clearly been no takers for kcd, so with suppliers needing to be paid, with real estate taxes due and with a $400 million payment due to the pension fund, the only thing left was for eddie to issue letters of credit. $200 million or even the $500 million wont go very far, and I wonder how much juice he has left in the tank himself to keep on doing this since the monster that is sears needs feeding and will consume more than $2billion a year just to keep the lights on.
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There have been people on here with information from Hoffman Estates warning folks that mid-2017 was it for the past year...only to be derided as false rumors. I thank them for posting the truth. GET OUT OF SEARS AND KFART NOW-START LOOKING FOR NEW JOBS.
Why July 2017 specifically? What allows him to keep the properties?
Why does Sears remind me of the carnivorous plant in the movie Little Shop of Horrors?
Just a thought. Even if everything works out with Eddie keeping the Seritage properties and SHC going BK. Does Seritage have enough money to develop the properties and do they have renters willing to rent? With the glut of commercial real estate on the market and about ready to go on the market does it make sense to rent from Seritage? Why not rent the other Billions of square footage availiable from others who are going out of business or malls that have space to rent.
It cost lots of money to develop a property and also lots of money to close and liquidate stores. Also, how about the asbestos and other hazards in some of the older Sears/Kmarts? How much does that cost to abate?
Why does he need only to July... Sorry I forget... I been following this awhile but I forget why July 2017 is the point he can keep the properties... Thanks
eddie does not have $1 billion to loan them - and they will need far more than that to get to july.
He only needs to float them money to survive until July, so weather he has to loan them 200 million, 500 million or even a billion, he will loan them to ensure he gets to keep the seritage properties, the seritage properties were bought for 2.7 billion but are worth way more than that so yes Eddie will loan 500 million to save billions in seritage properties that were stolen from Sears... then after July he couldn't care less and will never loan another dime