The inventory numbers have been cooked for years. There is less inventory than they report and it is the inventory that backs the loans. The SYW numbers are false with hundreds of thousands of fake or multiple accounts. The real estate is not worth what they say with all the leaking roofs and no upkeep for at least 10 years. Any creditors who would want a piece of this company are crazy
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What are the odds that creditors push for liquidation, concluding that Sears is worth more dead than alive?
@qfy-The other offer is trading the debt in for SHLD stock. Basically these debtors would consider their bonds paid in exchange for equity in the company.
If you aren't risk adverse, there's potential to make big money when stocks get down this low. A hint of good news can send the stuck up 30 or 40% one day. Or bad news might send it down that much.
@xat - what is your source? You cannot close SHI so easily it would be only after all the stores and majority of HE emptied.
. . . and watch vendor flee in droves. No credit means no inventory. . . . Death nell plays in background
Sorry all the grammatical errors below, did not proof read. rushed.
In regards to the creditors. This is as close to bankruptcy as you can get without filing. They thrown around tons and tons of fancy words that purposely cover things in mystery.
To help put this in perspective for just regular Joes and Jills. Google "Debt Settlement".
If you as an individual were to do this, it will haunt your credit report for years and almost be equal to bankruptcy. But because of the laws of this country that have been created for companies, a corporate institute like Sears and do the same thing and not get near the same pain as you or I would. But Sears does open the door to getting sued out the butt. No worries though, High Priced lawyers will keep it delayed for years and years.
In the eyes of the law of the country, A corporation is equal in rights/protection to a person. But it has many extra benefits that you and I don't have.
https://www.debt.org/settlement/
Yes there will be announcement of closure of SHI on 15th.
Confirmed news not a rumour
It’s a guess/opinion article on sears.
TLDR version
Sears is tight on cash, like real tight.
Eddie has 2 offers on the table that will help sears get more cash on condition they sell more assets to his other companies.
Also Edward has thrown out there a complicated exchange program to companies to recieve 25% of what sears owes them or possibly get 0 if he has to file bankruptcy.
October 15 is the deadline before one of these actions above has to take place because sears does not have the cash with current situation.
In summary
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Asset Sale gives cash to sears buys more operating time.
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debt restructuring with creditors 25% buys more operating time.
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bankruptcy protection