Thread regarding Sears layoffs

Good news: Sears Said to Consider Debt Sale That Would Benefit CDS Traders

By Claire Boston , Davide Scigliuzzo , and Katherine Doherty

November 9, 2018, 6:31 PM EST

Sears Holdings Corp. is considering whether to auction off a chunk of debt that could give the bankrupt estate an infusion of cash while potentially allowing a bigger payout to hedge funds that bought insurance against its default.

https://www.bloomberg.com/news/articles/2018-11-09/sears-said-to-consider-debt-sale-that-would-benefit-cds-traders

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Basically, it's a game to try to get more from the bankruptcy court. Buy a boatload of worthless debt for pennies on the dollar, and use that to squeeze more out when SHLD is finally liquidated. SHLD won't get more than a pittance in this auction, because otherwise it's not worth it for the buyer, who knows full well he's buying junk.

Yes Wall Street should get a payout before landlords, suppliers and pensioners. Sad

Thread regarding Sears layoffs

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