Sears has proposed having its Chapter 11 reorganization plan filed by late December and confirmed in March 2019.
One critical date is Nov. 15, when it plans to make a decision about its so-called "bubble stores" that are being reviewed to see if the lease terms can be renegotiated and if ways can be found to make them profitable.
Our lease was suppose to be up in October 2020. We start liquidation if a week. Leases mean nothing when your company is BK85
I need to read the filings because right now I am laughing in disbelief that someone could say with a straight face that cash burn is "only" 125 million a month. Even if he'd gotten that right, that's a lot of money to be losing and expect to get compassion from the court.
It is my understanding that every month on the 15th the company has to give updates to the court on how well the reorganization is going. The bankruptcy judge can see through the deceptive phrases that the company has tried to use on the associates. GL.
The banks and vendors want their money... i doubt the creditors are going to approve any reorganization plan.
I read some of the filings. CFO stated the cash burn is only $125 million per month. That's what happens when you drink the cool-aid and forget that (intentionally) cash flow factors in new loans each quarter in his own financials! New debt does not in reality constitute cash flow.
There will not be any new loans post BK. Payroll alone is listed as $67 million per week in the BK filings (not per month); so cash burn will be over $300 million per month; not $125 million per month as stated by CFO.
That gives only 45 days on Eddies loan plus in my estimate less than 30 additional days on the DIP... without factoring additional costs due to restructuring. That leads to mid December (75 days) AT BEST before DIP plus Lampert's loans extinguish.
Hmmmm. Our lease is up in March of 2019.