Sears Holdings Corp. (fka SHLDQ)

[Jayay222]

So, it's either full liquidation to pay creditors quicker $$$....or...save thousands of jobs affecting countless families + save better performing stores + give an old American icon a branch for possible longer term survival? The winning bid is there, please get it done Judge. IMO GLTA

https://www.chicagotribune.com/business/ct-biz-bankruptcy-court-weighs-sears-sale-20190131-story.html

[justthefactsmam]

linda,

ampuzzo posted an article relating to the nol's (post 17733). while it is an article filed before the bk it is nevertheless informative.

following taken from the article with my thoughts:
_____________________________________________________________________

Creditors who have held debt for 18 months before the filing and whose debt rose in the ordinary course of Sears’s business are "qualified creditors" who can thus avoid losing the tax assets even if there’s a shift in control towards them.
____________________________________________________________________

if esl's bid is approved, certainly seems that a "shift in control" will occur. esl's credit bid was approved by shc and to do that, esl's debt had to be deemed qualified and esl had to be determined to be a qualified creditor.

_____________________________________________________________________

Avoiding liquidation is also crucial to keeping the tax assets. If Sears unwinds in bankruptcy, the net operating losses could disappear, Haya said.

______________________________________________________________________

i believe that above comment from the article was made assuming that esl would not get its bid approved.

if esl owned more than 50% of the stock, then no other entity could which would mean if the going concern was sold to anybody else there would be a shift in control which would nullify the nol's.

seems like esl could not selectively wipe out common shares he did not own while keeping his own common shares intact.

the wrinkle for me is how a transaction in which esl exchanges shc debt for shares in holdco might impact the argument on a shift in control. since esl still has over 50% of the stock, maybe no impact at all and when all is said and done if "q" commons are exchanged for holdco commons then esl will just control even more than 50% which further cements his position and fortifies the "no shift in control" issue.

guessing if esl's bid is approved that all of this will shake out in a por.

hurry up and wait seems to be the order of the day

[Deweynami]

Explain why you think this?

[Deweynami]

With all the companies and businesses lined up to stop this at first look its could be scary. When you see the outstanding lawyers that the best money can buy rebut the reasons today you will how the ride will turn. They will paint the creditors as money hungry, bitter, out to get paid. The main guy Simon who owns all the malls is actually on record saying he can rent sears units for more money now and it’s in his best interest to them to fold. This judge has sent the two sides back to the table to make this deal work. He wants to save the jobs, the the government pension group was awarded a price of kenmore and die hard to help fund this. I think it gets approve no questions, commons survive ( guess who owns the most and would have the most to lose? ESL that’s who) Eddie will also make the case that between the cash he is bringing to the table and the credit he will use, he not the creditors has the most to lose. In the end he may have to sweet-in the pot a little to pension group or take on more of the bad debit but this deal gets done.

[youtoo]

Judge will side with creditor, "Not enough beef"
It is all over!

[justthefactsmam]

orion,

the pbgc actually did file a docket objecting to the zero value you referenced. my recollection is that pbgc wanted the court to order a couple hundred million payment/recognition of royalties.

not sure i've seen anywhere that pbgc is seeking the billion + shortfall but they seem to be interested in the royalty issue

[I-Man]

Tool, nope, not at all!! In fact today court hearing scheduled for crooked Lampert & Sears. Will take a couple days overall...

Lampert trying to buy what assets Sears has left, but nobody wants anything Sears has left today (except the Debtors he owes big time). JCP on other hand, most definitely has had amazing turn around business re-structure going on last few years in fact, and this Q will surprise and catch so many off guard... Wait & see... JCP advertising a lot on CMT and other channels too we see...

[I-Man]

I NEVER short a stock and am not in this mess of a company.

[StockNinja33]

Last days to buy at a discount. Ruling most likely coming Wednesday

[growingpains]

Despite All *Retail Giant Recovers SEARS MORE SOLID THAN EVER

[Shyguy101]

And if i get to pick my own judge and where i will file, i would most like pick one that will rule in my favor...and with billions of dollar...lampert best interest is to know where to file to be in his favor.

[Shyguy101]

One thing i know is that sears had the option to pick anywhere they want to file the bk in the country...instead they pick new york...and also judge Drain. In a way i feel that sears picked the Judge knowing what the outcome might be...just my opinion...so everything is really a theatrical and everyone is just playing out their part.

[Scotttrader80]

When does this part happen

13) $5,200,000,000 buyout / 109,200,000 shares = $47.61/share

upon droppage of the Q?

[Scotttrader80]

Also if you go to their web side there is a statement on their home page saying that they are taking over the sears pension.

Thanks O, FUD squashed, thats all we need to know

[Orion1972]

I thought that a couple of years ago PBGC saw or felt that there was real risk of sears going into Bk so they took a 1.7 billion dollar position into kenmore and diehard to off set the short fall in the sears pension. the PBGC was upset because APA gave a value of 0 for kenmore and diehard. Also in all the dockets that where filed before and on friday I didnt see any that included anything from PBGC. just a couple of news articals. Also if you go to their web side there is a statement on their home page saying that they are taking over the sears pension.

[Scotttrader80]

hahahahahaha I dont care

[Crazy Money]

Crazy weeeeeeeeeeeek coming to SHLDQ

[Orion1972]

sorry I thought you where shorting it..

[linda1]

It is too late here to review the filings tonight.
I will answer your 3 posts tomorrow.

[AMPazzo]

Whose shorting it. I have been trading in and out of it since .33 cents. I buy ride it up then sell pullback buy back in and ride it up. I always invest the same amount but on every pullback I get additional shares. I got out Friday at .545 now I want to buy back in between .48 and .44

Now we are at the tricky part of the game because the next 3 days if I get in tomorrow in the mid 40s we may not see the large run ups like we have seen in January

[AMPazzo]

Lets get legitimate answers no stupid answers from people who are not familiar with creditors and bankruptcy proceedings.

Remember all these unsecured creditors will be heard in court and the judge will have to render a decision. We know the Pension Bureau is lobbying for 1.4 billion. Say Judge Drain sides with them and says royalties from Sears brands must still be paid. That is a blow.

Remember there could be close to 100 Billion dollars in debt owed to Unsecured creditors and it seems like 99% of the posters on here think Judge Drain will wipe the slate clean. And Creditors will not get a penny.

I see Judge Drain siding with the Pension Bureau because that would be bad optics. I also see other unsecured creditors prevailing.

My opinion is the stock will trade sideways during these hearings and once it is all hashed out and every creditor heard then the stock will begin to act. I am going to roll the dice and get in tomorrow between .44 and .48. Then I will sit nervously through the next three days hoping for good results for ESL

[Orion1972]

Pazzo you do realize that article states the commons must remain intact for retention of the NOL's. Arent you shorting this stock?

[AMPazzo]

If you want a good brief on Sears Net Operating Losses just read this article.

NOLs are Sears most valuable asset

[tooltimetim]

Lol

[~ Ether ~]

No one needs to be hand held with THEIR MONEY...

[Crazy Money]

Most shorts have yet to cover just sayin'

[buxcapital]

Lol if you say so.

[buxcapital]

Wish you luck !

[DDStocks]

NP!!! $1s coming

[thelionwarrior]

80 cents soon! Could easily get there tomorrow! Lets see if more people load up before the big news!

[buxcapital]

Yes you do bro

[buxcapital]

Yes looking for high .39s tomorrow

[PennyStock Alert]

Thank you for the update sir.

[StrategyTrader]

Sorry correct was Ackman typo error i was comparing bk possibilties

[justthefactsmam]

if you want to know what actually happened with ggp, read this:

https://turnaround.org/sites/default/files/5.%20Paper%20-%20GGP%20-%20NYU.pdf

[justthefactsmam]

eddie lampert had nothing to do with getting ggp out of bankruptcy. it was bill ackman who engineered ggp's emergence from bk.

[justthefactsmam]

ggp didn't have the problem of more liabilities than assets. their problem was an inability to rollover or refinance their debt. the crash had just occurred. ackman primarily came in prior to bk, purchased a lot of the debt and equity and when ggp filed ackman was in the catbirds seat as a white knight.

nobody was left holding the bag in that case. i believe all creditors were made whole and all commons survived in a 1 for 1 exchange

[Illini18]

For you...we are sitting good over here with our shares...

[buxcapital]

This one might get ugly fast!

[StrategyTrader]

for those that do not know it was Edie Lampert who got them out of CHAPTER 11, I was there sold my common share under 29 bucks made a loot. Will do the same here I trust Eddie let it play.


Lampert said he will maximize shareholder value with the buy out offer.

[DDStocks]

SHLDQ statistics:

1) Sears/Kmart has a 109 Million OS

2) Less than 30 Million Float

3) Current Market Cap of $58 Million

4) The top 425 profitable Sears/Kmart stores will remain intact

5) $5.2 Billion buyout accepted last week and to be confirmed by Judge Drain this week

6) $5.2 Billion divided by 400 stores is $13,000,000 valuation per store

7) Current Market Cap of $58 Million divided by 400 stores is $145,000 per store

8) CEO and insiders own over 70% of the float

9) At least 40,000 US jobs are
saved

10) Share structure remains intact and no evidence otherwise than scare tactics on IHub by Shorts

11) Over 11 Million shares of the less than 30 million Float have been shorted

12) The Buyout has been accepted by Sears and now only needs Judge Drain’s approval

13) $5,200,000,000 buyout / 109,200,000 shares = $47.61/share

[StrategyTrader]

Judge Gropper told the rest of the U.S. commercial real estate industry, “I urge you to avoid Chapter 11 and restructure out of court if possible.”

[StrategyTrader]

for the purpose of comparison GGP took a year to get out of BK OWED Billions of dollars everyone said common will get nothing based on court documents and how people interpreting the law. was hush hush as they were sifting through the process the price was going up slowly every day and boom there was this release. I believe they keeping a lid on Common Shares till later after approval.

see bellow link for comparison

https://www.reuters.com/article/us-generalgrowth/general-growth-cleared-to-exit-bankruptcy-idUSTRE69K41320101022

[justthefactsmam]

remember, if the judge rules against els that esl is a secured creditor with first take on some of the properties. he made sure his loans were secured by property.

either way, lampert wins but he wins much bigger if his bid is approved.

[Orion1972]

what scheme? get the Left outta your head. Lambert bought back 5billion shares with his own/esl money.

[Orion1972]

it looks to me that lambert and friends would lose 40+ million at current pps and if the judge declines the deal he could be out 60 milion.. the 40 million isnt much to lambert and friends but the potential of said share could be huge.. at $10 pps that is a three quarter of a billion.. if he swings the business around and competes with similar stores Kohles, target, walmart and Kroger, their holdings could be in the billions. if he expands his partnership with amazon/ wholefoods..... the plan is to reduce footprint 20 to 30k sqft per store the average sears store is 138000sqft whole lot of room in good locations for wholefoods. its just a hunch but entertain this. kohls is 66.69pps, target is 71.17pps kroger 28.07pps, walmart 93.86pps with an average pps between them of 64.94pps 4.9 billion for their commons. Now I know that isnt a reality, but amazon is looking to expand its wholefoods footprint, sears has leases or outright own stores that are bigger than their purposed square footage... foot traffic for sears and relestate for amazon.. ok I'll put down the pipe but still..

[RiskyBoy1989]

Thank you for that so first pop will happen if Judge approves the deal... next pop will happen if commons survive.

I have a same game plan to hold long if judge approves it in the favor of Lampert and sears. If not peace to the Middle East!!

GLTU

[justthefactsmam]

if the judge doesn't approve i'm out and hope to not have a total loss.

if the judge approves, i'm holding until something definitive comes out re: the por. again, if commons don't survive i'm out and hope to not have a total loss.

if the por comes out and the commons survive, i am skeptical newco will have a game plan which keeps the stores viable and i will be looking for an exit point within a 1-3 year timeframe.

if newco becomes a reit, i will feel a little more encouraged about longer term prospects which would include selectively repurposing stores. i believe there is a lot of upside in the chicago metro corporate headquarters. they have over 2 million square feet of office space which over time could produce great value. additionally, i believe they have over 200 acres in their corporate hq site which can be developed.

i hold no prospects this will be a $40 stock. i would feel great if this were to get into the $10-$15 range.

who knows? maybe eddie will surprise us all.

if there really are 12mm shares short and some type of insane squeeze were to occur, i might look to cash out.

i'm not in this looking for a double or triple. already have more than a double and can't really sit on my computer to day trade and maximize flips.

[katano]

This month we shall hit one year high and end of the year shall hit three year high...

SHLD(Q) is not going out...

GL

[squidster]

Under Lampert’s guidance the company hasn’t turned a profit since 2010
At issue on Monday will also likely be the motivations behind Lampert’s efforts to save Sears. Its unsecured creditors have cast doubt in the altruism of Lampert’s efforts. They say his proposed deal is “nothing but the final fulfillment of a years long scheme to rob Sears and its creditors of assets and employees of jobs while lining Lampert’s and ESL’s own pockets.” They also doubt Sears’ post-bankruptcy viability and its ability to avoid a second trip to bankruptcy court