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He is still the largest shareholder of record, but technically shareholders no longer own SHLDQ. It is in receivership. That's what happens in bankruptcy. The creditors take over. Since he was also one of the largest creditors it was what allowed him to grab the assets for himself. Even if shareholders still had power, they don't really have direct control over the company, and Eddie resigned his board position back in February.
That means absolutely nothing. Reporter and news sites don't work for either SHLDQ or Eddie's new company. The same thing happened when Dish bought the assets of Blockbuster. Many news reports linked the "new Blockbuster" to the old ticker and it ran up several hundred percent until the SEC stepped in an halted the stock. They forced them to change both the ticker and the corporation name.
Also, people needs to give the "Eddie's going to save commons" a rest. Eddie doesn't work for SHLDQ anymore either. Read the statement from his lawyer when he resigned his board position.
Yeah, that's great but Sears is a completely different company and no longer has anything to do with this ticker.
Oh, as for your other point. The same person that ran Sears in to the ground is still in charge of the "new" Sears.
Companies that have no operations, or are outside the purview of the SEC. I looked at about dozen of the companies and stocks listed in that post. Either they were foreign entities from shady nations like the Philippines, or the shell was just that, a shell. Search for "Operation Shell Expel". This is an ongoing SEC operation to clean up fraudulent shell corporations.
These are all scammer stocks and/or stayed in penny land. I will clarify. Post a real/major reverse shell merger that has happened EVER.
There have been a few penny stock shell scams recently that have tried and the SEC stepped in and squashed them like a bug. These types of mergers are synonymous with scams. They might be a great play for a day trader, but no legit business is following this path. The point of going public is to cash in and raise a boat load of money though an IPO. That does not happen in a reverse shell merger.
"Reverse merger with an empty shell. We see that everyday and we hope to catch one at ground level."
Care to actually name of these reverse mergers with an empty shell that "happen everyday"? Not to mention the fact that the whole point of a 363 sale is to separate the assets from the debt. Wouldn't make a whole lot of sense to turn around and buy it right back.
So you can post for us all of those "legitimate restructuring" that have occurred that benefited shareholders then? I'm sure we'll be wait a while for your response.
Did you read the attached exhibit? But hey, keep moving the goal posts.
Dude, these are generic articles related to NOLs in general. Post something in relation to the asset sale and the new company.
Prove it. Post a link to a reputable site or article that backs the claim. A bunch of posts on a penny stock message board citing other penny stock message board posts is not evidence.
I love how posters here keep arguing about Eddie's share of ownership or acting like that even matters. There is no equity committee formed, and there likely will not be one. So shareholders have ZERO input in to what happens. When your house gets foreclosed on you don't get to dictate to the bank how much cash you get to keep. Same goes for shareholders when their company is insolvent. SHLDQ was foreclosed on and the bank sold your house to Eddie free and clear of any liens.
I suggest you actually read the rules of Chapter 11 bankruptcy, as your conclusions are all wrong. One, Eddie has no control anymore. He resigned. Being the largest shareholder means nothing. Two, Chapter 11 covers liquidation as well as reorganization. No, it does not have to convert to Chapter 7. The majority of liquidation occur under Chapter 11. Two fine retail examples are Circuit City and Borders.
I'm glad you posted this. It serves as a wake up call to the delusional. I'm amazed at how some people get in to denial about a stock. Even after the Radio Shack stock was cancelled there was that one guy that kept posting "I think it is going to come back". Really dude? Do you not know what cancelled means?
Are you really serious? OK, here is the deal. Go back and read all of my posts on every other stock board on this site or any other. I use the same ID everywhere. My record is 100% accurate. So ask yourself who is trying to hurt who.
Oh, how I love how the narrative has changed in a matter of a day. Just yesterday longs were still denying reality and acting like Sears still belonged to SHLDQ. Now that reality of the situation has set in they've turned to the tried and true "NOLs" play. It was quickly followed with the first post suggesting a "reverse merger", which usually doesn't happen until the liquidation/chapter 7 conversion is announced. I guess certain longs are getting desperate and will be sweating the next three days.
BTW, does anyone know any publicly traded law firms that deal in divorce, personal brankruptcy, or criminal law? I have a feeling they might be seeing a spike in new clients in the next few weeks. Remember, if you're in the good old USA, uncle RICO is always watching. He's like Santa, except he works for the DOJ.
OMG, this is too funny. Did all of you pumpers buy a book on penny stock pimping? It is the same game every dime. The finally play is the "reverse merger". Blockbuster, Liquidation Motors, RadioShack, etc. The same flat out BS time and time again. SHLDQ is now in stage 2 of denial. Several more stages until they reach the reverse merger stage, though some have already made the leap.
You might want to call the SEC and the bankruptcy court. They'll be shocked to hear this news.
You're using GM as an example? They cancelled their shares. Old shareholders go wiped out. Joe's Crab Shack and Radio Shack are better examples of what is happening. This is not rocket science and it is not new.
Here is a challenge to all longs. Post one example of 363 asset sale ending in a positive outcome for existing shareholders.
Eddie, the owner of the new Sears, seems to disagree with you. I'm going to go out on a limb, but I think he might have a better grasp of the situation than you do. Just MHO.
https://www.cnbc.com/2019/02/13/eddie-lampert-thinks-sears-could-be-a-public-company-again.html
Eddie, the owner of the new Sears, seems to disagree with you. I'm going to go out on a limb, but I think he might have a better grasp of the situation than you do. Just MHO.
https://www.cnbc.com/2019/02/13/eddie-lampert-thinks-sears-could-be-a-public-company-again.html
Prove it. Post exactly where it says that. Oh, and how does it differ from the previous 13Ds that have been filed over the last few months. Lots of posting on this board of "gold in dem der hills" but no actual facts to back them up. It is not hard. The 13D is public. Post the new lines that state that commons are being converted in to new shares.
I can tell then that you didn't actually read it, did you? I just ran a diff report on the two. Other than some of the numbers changing by less than 1% there is no difference in the language. If your so sure of yourself post your proof.
Are people using special glasses to read today's filing? As other than the dates it is nearly identical to the one filed on 1/18, and the one filed on 12/18, etc.
Never. Sears with a new owner exited bankruptcy. SHLDQ is still very much in bankruptcy. Don't believe me? Go to prime clerk and read docket 2430. Then see the filing that were still being posted today. Companies that "exited bankruptcy" don't keep having hearings and filings in bankruptcy court. Oh, and if the public corporation had been bought their would have been a flood of SEC filings that documented every detail of the transaction, especially the price being paid per share. Those things aren't kept secret.
Did you even look at the date of the link you posted? It is from 2015.
I don't disagree. Commons will not be cancelled until the POR. This is SOP. The only remaining question is will commons receive anything in compensation. Based on the proceeds of the asset sale versus the outstanding debt, I would say no. The rules regarding this are not based on emotion, but clearly defined creditor classes. Shareholders are dead last in order of payment. This will probably have a few more dead cat bounces, but that will stop once the new Sears starts moving on and no new news comes out.
Docket #2430. It is a listed right in the title and in great detail in the document. It is an asset purchase sale. This is not ambiguous language and 363 sales are not rare. If he was purchasing the corporation the details would have been announced, including the price per share. These things are not kept secret.
It already is a private company. Eddie and ESL bought the assets, not the corporation. Read the details of the 363 sale. It is all in the filing.
Oh, did you finally realize what happened? This is not rocket science. Eddie bought the assets, not the company. You hold paper for SHLDQ. Eddie, ESL, and the new "Sears" are complete separate entities. Shareholders now own a shell that still has a mountain of debt, but no assets of any value.
Yes, the sales of the assets to Eddie. It was a 363 asset sale. SHLD is still in bankruptcy, minus any valuable assets.
The problem is the mod is the biggest scammer on the board. He is claiming today that Sears has existed bankruptcy and is going to purchased for $47 a share. These are outright lies and fraud.
Did you actually read the link you posted? As it says the exact opposite of what you posted.
"
Z. The Sale Transaction does not constitute a de facto plan of reorganization or
liquidation as it does not propose to: (i) impair or restructure existing debt of, or equity interests
in, the Debtors; (ii) impair or circumvent voting rights with respect to any plan proposed by the
Debtors; (iii) circumvent chapter 11 safeguards, such as those set forth in sections 1125 and 1129
of the Bankruptcy Code; or (iv) classify claims or equity interests or extend debt maturities. Entry
into the Asset Purchase Agreement and the Sale Transaction neither impermissibly restructures
the rights of the Debtors’ creditors, nor impermissibly dictates the terms of a chapter 11 plan for
the Debtors. Entry into the Asset Purchase Agreement does not constitute a sub rosa chapter 11
plan."
Why is the SHLD board being allowed to be run by scammers and frauds? The mods on the boards delete almost every single message that is not pro-pump&dump within minutes of the posting. The fact that this site is ignoring this is almost beyond belief. The DCMA protection only goes so far. Criminal facilitation is not covered under that protection. While users might be free to do as they wish, Mods operating on behalf of the site do not enjoy the same level of protection. Does the SEC finally need to shut this site down all together?
Unsecured creditors are still in front of shareholders. You are suggesting that people that did work for Sears or sold them merchandise should get screwed over so that penny stock gamblers get a pay day. Name a case that is like this one? Pretty much every bankruptcy in history. Sears has been bleeding cash for a decade and most of its failures have been self inflicted by Fast Eddie. Another thing. Did you actually read the filings? This is an asset sale. That means Eddie buys the assets and owns them all by himself. Guess who doesn't have a chair when the music stops?
You don't actually know how bankruptcy works, do you? If "creditors are losing money here" then commons are getting zero. Creditors need to be made whole before shareholders see a dime. This is not IMHO. This is the law.
On you planet does debt just magically disappear? You kind of forgot about that 12 billion or so that is still out there. Yes, Eddie forgives about 1.3 billion of it. So you still have 5+ billion dollars that needs to be paid before shareholders see a penny.
Not anytime soon. Bankrupt companies are not allowed on any of the major exchanges, and SHLDQ isn't existing bankruptcy anytime in the next few weeks at a minimum. If there is a POR then any shares that do get relisted will not be the shares that currently exist.
This is what I find truly amazing about this pump and dump. All of these people are cheering Fast Eddie on like he is their savior. He is the one that ran Sears in to the ground in the first place. Do these people do zero due diligence? Eddie could have saved Sears starting in 2003, but instead he decided to milk it for every penny, without putting a cent back in to improving the business.
That means nothing. Sears may very well live another day. The question here is will commons survive. The answer is "almost certainly not". The price today had nothing to do with MMs or shorts. Everyone knows what is happening except for the people on this board.
BTW, don't give me this BS about Eddie "owning shares so he wants commons to survive". If his plan is passes he will still own the company, minus a **** load of debt. He is the 100% winner if shares are cancelled.
This is flat out incorrect. In Chapter 11 creditors have to be made whole before owners see a penny. This is not my opinion, this is the law. Creditors can forgive debt in exchange for equity, but the only way that happens is if shares are cancelled. It effectively becomes an IPO at that point, just like every other reorg plan.