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WYCO Researcher
Multiple Bids For Sears By Lampert
Jan. 4, 2019 7:58 AM•SHLDQ
Summary
Lampert/ESL submitted multiple bids on December 28 according to January 2 SEC filing.
Lampert is using a credit bid, some cash, and assumption of liabilities in his bid.
Investors, including current shareholders, would get a token amount as payment for releases.
The bid does not seem to allow for much recovery for claim holders other than first lien and administrative claims.
Details about Eddie Lampert's multiple bids for Sears Holdings Corp. (OTCPK:SHLDQ) were filed with the SEC on January 2. The bids do include payment for releases, which would be paid to SHLDQ shareholders. It is critical for various parties to understand that his bids are not the Ch.11 reorganization plan but are bids to buy specific assets. They are also not bids for Sears Holdings Corp. itself.
(Note: the analysis in this article of the bids is based solely on information contained in the filings. Many of statements in these bids are ambiguous and incomplete. This article is based on my interpretation of these statements. The article will cover some interesting issues and not on every little item in the bids.)
