at the same time he has saddled the company with annual interest charges of at least $25 million. Now the interesting thing is how much unencumbered real estate is left to sell off in the deal that they want to do. Of the roughly 400 stores they owned we can account for just over 200 of them so lets say 200 remain. These are likely to be the worst - but lets be generous and say they are worth $7 million piece- that would raise $1.4 billion. Of course it will also slap yet more rent/interest on the cash flow. Now that $1.4 billion together with the money he has loaned year to date circa $2 billion is not even enough to cover a years operating loss. Never mind pension contributions nor the the debt reapyment due in July. But lets be optimistic- we can probably say sears will be all out of cash sometime towards the end of this year. I suspect to avoid any clawback we will see the rest of the 200 stores go the same way as the 46 in a loan secured against them- that way no chance of a clawback in a bankruptcy- issue is eddie does not have the $1.4 billion to loan so esl will have to borrow and hope to do it.
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No the $312 million are covered by 46 stores if they take the rest of the $500 million loan more stores will be needed as collateral.
It's gonna be 500 million divided by 46 stores 10.87 million per store....
$312 million divided by 46 stores - $6.8 million.....
the stores were valued on average of about 5.5M .these stores only cover approx 325M borrowed not 500M.
over 140 properties are vacant, some for years
He is s---ing every last dime out of sears, even with this, he is loaning sears money at 8% interest, more money he gets to keep, then when the stores sell, the funds have to go towards the 1st lien which is.... Eddie. So Eddie sells the best properties to Seritage which he somewhat owns also, he gets to redevelop and keep those, he loans himself money on the middle of the pack properties which he will get paid for once they sell, and then the worst properties will be left in bankruptcy. No one gets paid besides Eddie...