Sears Holdings Corp. (fka SHLDQ)

[StrategyTrader]

Exactly been saying that forever :)

[PennyStock Alert]

“Drain told the company to try to reach a final deal because it was his “very strong” preference to save as many jobs as possible, Transier said.”

[PennyStock Alert]

“Schrock said Sears is still hoping to win the judge’s approval for the sale this week and close the transaction on Friday.”

[linda1]

There was a change of ownership in the WMI
Bankruptcy when the new Commons were issued
and it reduced the NOLs from $7.5 B to $ $6 B.

So the NOLs get reduced not nullified.


I wonder if the Holdco “ Securities Consideration “
that will be paid to the Debtors upon the approval
and closing of the 363 Sale includes the Holdco
Equity that will be exchanged for the $ 1.3 B Debt?


“ In the Buyer’s capital structure, more than
$1.3 billion of this debt will be converted into equity “


If Sears is planning to liquidate the remaining Stores
it does not necesssarily mean that it includes selling the
empty Stores and Land that Sears owns.
Sears could emerge from bankruptcy with these properties
and later sell them to Amazon for its expansion of Whole Foods.


I have posted earlier that old Debt can also preserve the
NOLs as long as the Creditors of the old Debt receive at
least 50 % of the new Commons - or is it as long as both
old Debt and old Equity receive at least 50 % of the new
Commons? I can’t recall but it is one or the other.

[mojo joyo]

Is not that.is just churning waiting for and update.say that early today.and will keep same way till news arrive good or bad.I'm hoping is good. but I think this will be going on to end of week.

[justthefactsmam]

this is from docket 2379 filed this morning:

from page 21/77 and filed by esl's lawyers

"the improved bid involved the assumption of another $663 million in additional liabilities, including up to $166 million of payment obligations with respect to goods ordered by debtors prior to the closing of the proposed transactions (but as to which goods debtors have not yet taken delivery and title prior to closing"...

_______________________________________________________________

possibly the dispute involves proof from the debtors those goods have been in fact delivered and are in shc's possession or proof has been provided some/all of those goods have been sold.

seems like esl would be well within its rights to demand proof so that they don't take on any portion of a $166 million obligation only to find that the "goods" have somehow gone missing.

language seems clear esl is responsible but it also seems clear that shc had not yet taken delivery and title. should be an easy matter to resolve.

[SPORTSPROPHET]

Banging its head on .60 for 2 1/2 hours...MM's SUUUUCK!

[CaptStockWolf]

Price is holding the front line very nicely

[RiskyBoy1989]

So I think one thing for sure we going to Wednesday for final decision. It’s already 3PM in New York and court closes in an hour.

[squidster]

Wow left or right if Lampert bought back 5 billion shares gotta be a safe bet SHLDQ survives. Are you sure it wasn't 5 trillion shares:)

[Illini18]

Media must be sitting short...they are all so damn negative...

[InvestTrade101]

News, keepin my eye on possible $SHLDQ https://www.usatoday.com/story/money/2019/02/04/sears-esl-deal-could-unravel-judge-continues-bankruptcy-hearing/2731794002/
https://www.cnbc.com/2019/02/04/sears-creditors-challenge-idea-lamperts-bid-will-save-about-45000-jobs.html

[Illini18]

They are still shorting every uptick...can't wait till he rules on our favor...

[LQMTinvestor2018]

Are we continued to Wednesday?

[VASH87]

Drain is still on our side.

https://www.usatoday.com/story/money/2019/02/04/sears-esl-deal-could-unravel-judge-continues-bankruptcy-hearing/2731794002/

[SPORTSPROPHET]

Nice! And per your PM...YEP!

[StrategyTrader]

NICE BABOOM COMING ;)

[PennyStock Alert]

BAM!!!

[LQMTinvestor2018]

Once the judge oks this and its in the news this will run like crazy.

[Replacement]

Still long but waiting for run that has been discussed for weeks

[Scotttrader80]

70.Emerging from Chapter 11 with a right-sized and flexible balance sheet, the Buyer will expand upon its aforementioned success through its increased capacity to appropriately invest capital in attractive new opportunities. Kamlani Decl. ¶ 41.

And, in recognition of the inevitable business risks associated with its efforts, the Buyer is planning responsibly, such that certain aspects of the Business Plan are even more conservative than the well-developed and realistic plan prepared by the Debtors. For example:

•Externalizing Kenmore beyond Sears and Amazon. Despite its previously constrained distribution, the Kenmore home appliances brand remains a leading brand with significant market share. By forming new external partnerships and selling to mass discounters, big box specialty stores, and online retailers, the Buyer will be able to generate additional revenue from Kenmore. Business Plan 21-22.

•The Business Plan expects Kenmore third-party revenue from Amazon customers to increase from $80 million in 2018 to $300 million by 2021, which is approximately 50% less than the Company Plan’s revenue expectation.

•Growing its relationships with third party customers including Amazon through expansion of Innovel logistics network. Business Plan 21-22. This third-party business can be expanded with minimal additional infrastructure investment. Business Plan at 33. Further, ESL expects the Buyer to forge strategic partnerships across Sears Home Services, Innovel and other key assets to fill in known or expected gaps and unlock opportunities that Buyer cannot access alone. Kamlani Ex. A. The Business Plan expects $300 million in Innovel revenue by 2021 while the Debtors’ plan expects $500 million by 2021. Id.

•Tailoring the Shop Your Way program in a non-capital-intensive way. Because the technological capabilities exist already, and the Buyer will continue to test marketing strategies as it gains an increasingly sophisticated understanding of its 18-23538-rdd Doc 2379 Filed 02/04/19 Entered 02/04/19 08:00:13 Main Document Pg 43 of 77

[Scotttrader80]

Just a few excerpts from the latest Pacer filing today (77 pages) to get things moving along

[Orion1972]

mic drop!!!!!!!!!!!!

[Scotttrader80]

Independent Committees Approved The Proposed Sale

The Proposed Sale Is For A Fair Price And Maximizes Value For All Stakeholders

47.The Debtors fulfilled their duty when they chose the ESL bid. ESL’s offer provides more value to the estate than any other option, while at the same time saving 45,000 jobs and being supported by the Debtors’ largest creditors. Hr’g Tr. 22:5-11 (Jan. 14, 2019); 18-23538-rdd Doc 2379 Filed 02/04/19 Entered 02/04/19 08:00:13 Main Document Pg 32 of 77

13. As the Debtors’ own models show, in a liquidation scenario creditors would receive only $3.56 billion, whereas ESL’s Bid provides $5.2 billion in value to the estates, including $4 billion in creditor recoveries. Weaver Decl., Ex. 13 (Wind Down Recoveries Presentation (Jan. 14, 2019))

67.The Buyer will emerge with a healthier balance sheet and improved liquidity, giving vendors greater confidence and the Buyer the opportunity for better payable and credit terms than the pre-petition Debtor, Kamlani Dep. 228:17-229:4. Specifically, the Business Plan provides benefits from a revolving credit facility of $1.2 billion, with availability at closing of over $400 million. Kamlani Decl. ¶ 23. Moreover, and its importance cannot be overstated, the Buyer will carry only $1.1 billion in financial debt compared to the $5.5 billion carried by the legacy entity and no going forward pension obligations

https://pacer.psc.uscourts.gov/pscof/login.jsf

[SPORTSPROPHET]

You don't need to tell anyone what you did or didn't do.

SP

[justthefactsmam]

so, from this comment in docket 2379, of the 425 stores esl is proposing to buy, 100 are now dark and will be sold immediately upon closing reducing the footprint to 325 stores.

based on comment expect to net $100 million from these sales, doesn't appear any of them are part of a repurposing plan.

would be nice to know if they are dark and empty or if esl will be conducting its own gob sales.

also, if these stores are already dark, then there should be no employee reduction associated with that leaving the 40k+ number intact for now.

docket 2379 stated in at least two different places that esl would be assuming no go forward pension liabilities which certainly seems to suggest the pension shortfall is not an esl liability.

also the docket said at least twice that the pre-emergence debt liability of between 4 and 5 billion which would be reduced to just over 1 billion upon emergence.

[Scotttrader80]

The creditors have been whining for months not affecting much of anything. Today and Wednesdays evidenciary hearings will reveal more of the restructuring game plan.

Follow the dockets, things are going IN Eddies favor.

Let the CHASE begin

[StrategyTrader]

Short sellers will be ripped some covering lol

[StrategyTrader]

Bought 7700 shares at .595 pot is full

[PennyStock Alert]

10 X current Market Cap :)

[tooltimetim]

There's a lesson on being "that guy" and how a bad exit strategy can mess with everybody. Glad it seems to be short lived

[justthefactsmam]

The Buyer will assume over one hundred dark properties that it plans to sell after closing, which should generate over $100 million.

Seventy or eighty of these properties serve as collateral for outstanding real estate loans. Kamlani Dep. 112:22-113:8.

The Business Plan indicates the Buyer will monetize additional real estate assets, for a total of $600 million in anticipated real estate sales over three years. Kamlani Ex. A.

[Seanblue]

The creditors protests will dip the stock the when the dust settles and judge Drain sides with Eddie (DOLLAR LAND BABY!!!)

[Orion1972]

what news? links please.

[nagoya1]

For sure,"time is on my side"....oops, Keith Richards doesn't look like time took care of him.

One might not know that the BK judge might be telling us shareholders good news...SHLDQ

[Seanblue]

Chuckles and giggles are my thing.
Time is on my side.

[nagoya1]

Care to put that DD to the test....SHLDQ

You did provide some chuckles selling, can't wait for more giggles...

SHLDQ

[Crusen]

I bet the front loaders of this pump and dump are selling today.

[Seanblue]

The negative news currently out weights the positive for now.

[justthefactsmam]

also from docket 2379:

Thus, while it is impossible to predict the future and while no business plan can prescribe everything that will happen in the years to come, ESL has every reason to believe that the Buyer will thrive, for investors, creditors, associates, and other counterparts. It is willing to invest its funds and its senior secured debt to obtain that result

[PennyStock Alert]

Only a fool would sell on a day like today

[CaptStockWolf]

No need to be mean we’re all here to make money to each there own right. And yes I’m long

[Illini18]

Not only did he sell he sold at market...what an idiot amatuer...

[PennyStock Alert]

Climbing back up after some dummy sold

[jimr1717]

Pump and Dump

[andyk803]

Are they still in court?

[Seanblue]

We shall see

[Illini18]

Good luck on that one...not exactly a seasoned trader...could of sold so much higher good luck chasing...

[Seanblue]

Thanks CAPT

[CarlCarlMcB]

Belly up way to early ! .01 weeeeee$