Thread regarding Sears layoffs

There are tax loss benefits if Eddie continues to run the company and previous stockholders have some ownership interest going forward. Since Eddie owns approximately 55% of the company now and is the largest creditor he could cancel loans owned and in turn take say 98 % of the stock in the new company and offer 2% to existing stockholders to maintain tax loss carry forward worth over 1B if the business continues as a retailer and existing stockholders are participants in the ownership

@kam That's just because Bon-Ton as BONTQ has not completely ceased to exist on paper yet. Stores closed less than a year ago. The final piece of their assets is being auctioned off at the end of this month. https://investorshub.advfn.com/boards/read_msg.aspx?message_id=145935867

Well, even Bon-Ton shares are still trading for a couple of pennies even though the company has long ceased to exist. People still trade for shares of non-existent companies, god knows why.

Yes, it will be cancelled. No, you will never see so much as a penny. The company is in all likelihood going to be sold tomorrow for $5 billion or so. Taking out the $1.3 billion in debt plus the other $3.7 billion cobbled together in Fast Eddie’s likely to prevail bid and you’re still left with $6 billion or so dollars in debt. Common stock will be wiped out and cancelled, with everyone still holding it left out in the cold.

Common Stock shareholders are last in a bankruptcy

And in this scenario, once the buyer of the stores/inventory etc, assume ESL, completes the purchase, the value of the remains, that being the thing traded as SHLDQ, won't be worth anything. It will strictly be debt. Shares of debt. Expect the value of SHLDQ stock to reach zero before anyone cancels it. Of course, why would there even be trades at that point where a price would be reported. If you own the stock, who would buy it at that point to give you a few pennies for your shares? No inventory, no real estate, no intellectual property, nothing is owned by that company at that point. But alot is still OWED. If you have any shares at this point, which you shouldn't, dump them now. If you bought them at $50 per share, it will NEVER get back to that. Even if the Kmart cheerleader is right and the place has a miraculous recovery. That recovery would be the new company and you would not be holding shares in it.

This is why Eddie has said he wants to "buy" xxx number of stores etc. He is not proposing to invest in SHLDQ. He is buying and moving his purchase away from the old company.

Probably. Someone, assume ESL, buys parts of the company in the auction. He does NOT make it a public company therefore there is NO stock. The remains after the auction are still SHLDQ while it gets eliminated in the remaining, possibly years, of bankruptcy proceedings. Then it gets cancelled.

One thing to remember about a new private company owned by ESL. There are NO requirements for releasing quarterly sales figures or profits/losses. We won't know whats going on aside from leaks of info from employees.