(With apologies to Jim Morrison)
https://www.cnbc.com/2018/09/24/sears-ceo-proposes-restructuring-plan-to-avoid-bankruptcy.html?__source=sharebar%7Cemail&par=sharebar
22 replies (most recent on top)
As much as I dont like Trumps policies I can say this, Trump is no fan of Eddie. Anything Eddie tries to do to enrich himself will be swiftly voted down by the Pension fund and any BOD members. The SEC is already looking into SHC and its financial magic. Trump would not allow this to happen and be able to proclaim he is for the American Worker.
Eddie has a lot of bunnies in his hat. No need to worry. @Vjrna4d-hhy
I ask this with the utmost concern, did you miss your meds? @Vjrna4d-vha
I believe the poster was being facetious.
As opposed to Eddie, who is mendacious.
Its the meds you all are on if you think this company is done.
Maybe to many meds
Eddie has a lot of bunnies in his hat. No need to worry. @Vjrna4d-hhy
I ask this with the utmost concern, did you miss your meds?
Eddie has a lot of bunnies in his hat. No need to worry.
Providing capital to Sears for chapter 11 restructuring is like pouring water into a bucket that already has holes in it. The current corporate model is not profitable. It continues to lose close to a billion a year plus it has to fund the pension. Think about it... the current Sears has a market cap of 100 million yet the pension obligation is into the billions. I am not saying it's the pension' fault ... just that Sears has lost so much critical mass it can no longer support it's legacy. Sorry to say, but perhaps the best outcome is chapter 7, just like Carson's, TRUs, Montgomery Wards and others. They cannot compete any longer with Kohls, Target, Wal Mart and Amazon. Next on the endangered list might be JC Penney, Macy's and Lord & Taylor. These once mighty anchors of many a mall about 20 years ago are now barely keeping afloat.
In his proposal he asks OTHER (non ESL) creditors to suspend receiving interest. He proposes the company pat back 78% of debt.. aka ESL as creditor. He recently paid himself as creditor almost $1 billion (over $830 million). He has done this many times in the past; paying back ESL ahead of non-ESL creditors.
He suggests his creditors swap debt for equity. In repeated filings ESL clearly states he has warrants and convertibles that can be swapped into equity.... giving ESL above 72% of the equity... yet to-date he has chosen not to; so why should his non-ESL creditors elect to do it?
His loans are ALL collateralized; and bear interest above market rates. In Amazon's early days most of the loans pledged were non-recourse and provided at reasonable rates. Lambert could always have pledged non-recourse loans; below market rates; but never has!
He blames pensioners for his company's demise. Perhaps he needs a looking glass.
Look out everybody, if you look closely at the debt in this proposal that was legally filed you will see that the pension debt is not included. The PBGC would have to approve of this proposal. If they are crazy enough to do so you will be seeing both Sears and Kmart stores closing with absolutely no warning to satisfy this debt. And forget about the sale leaseback deals. They just closed with no warning a Sears store in our district that had a year and a half left on it's sale leaseback deal. Be careful everybody.
Its like Sears of Canada all over again almost a year to the day later.
SHC is not paying vendors, only has the worst stores left in the portfolio, is losing sales and customers, reputation is in the toilet, losing over a 2 billion a year and they want to restructure debt? What bank would take this deal? There is nothing left and no hope for the future. The only person this would help is Eddie and his fund. How many times can he play this game and people fall for it?
A loss of 9% so far is hardly putting a squeeze on shorts. All today's news is doing is reinforcing the notion that without drastic action, Sears is out of time.
They still might not even make it passed Christmas, forget 2020.
Sorry there will not be a 2020. The end is near.
Sheer brilliance on eddies part. Those of us who actually work there congrats!! 2020 here we come!!
Sorry to all u shorts screwed again!!
@Vjrna4d-wrb No but it was probably a power play to show the company that he pretty much runs the show.
If the PBGC buys into this , they are virtually useless.
Was the head of Kenmore fired or did he quit? That person would have absolutely nothing to say about the sale of Kenmore and would have no ability to slow or halt any sale.
Anyone else find it strange that eddie wanted to buy kenmore there was some resistance and the deal didn't happen. Then all of a sudden the head of kenmore is fired and replaced. Now he says if sears doesn't sell him kenmore and home services they will file bk.....hmmm
"ESL's proposal is designed to help create sufficient runway for Sears Holdings to continue its transformation and return to profitability for the benefit of its many stakeholders,"
And this is the end game, folks. He has said it himself, only giving a sh-- to the stock holders (which is mostly him now, btw). So for all of you defenders and cheerleaders out there, here is what we've been trying to tell you all along. He doesn't give a f--- about Sears or Kmart stores or the customers and their employees. JUST THE STOCKHOLDERS.
What a laughable "proposal"....."will provide a sufficient runway to continue the transformation".
Selling virtually ALL remaining assets is a good thing how exactly? Forcing the remaining stores into nonviable leases??? What a disgusting vulture this man is....
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