A group of lenders, including Bank of America Corp., Wells Fargo & Co. and Citigroup Inc., are pushing for the company to liquidate its assets under a chapter 7 bankruptcy filing, as opposed to reorganizing the business under chapter 11, this person said.
The banks are willing to provide debtor-in-possession financing but only enough for Sears to sell assets and inventory and close stores, some of the people said. The negotiations were ongoing Thursday, one person added.
and there you have your answers.
For those who don't know what Chapter 7 means, it's a complete wind down of operations and full liquidation. Eddie's rabbits are all gone.