Chap 11 by July 10, 2017?
Anyone following or have an opinion on the story line that SHLD files Chapter 11 after July 7, 2017?
The thinking is that is when the two year look back period will end on a $500 million loan repaid July 7, 2017; and there would be no point in delaying filing Chap 11 anymore.
While the top people would see their common shares made worthless, they would still be in control and end up with most of the company because they have priority with their debt, plus SRG could then break all of the leases and release the SHLD space for more money.
The other option is that the company does not file and continues to sell off anything of value until the vendors will no longer ship product, except on COD only. It is not clear how insiders would get any more value than if they file now.
Louis J. Desy Jr.
