as long as esl puts up the $120 mil today, the reports have said there will be an auction on jan 14th.
went back through the global bidding procedure (discussing that procedure was one of the specific things discussed at the status hearing yesterday) and the following cut/paste is directly from the plan.
while the plan discusses bids being qualified i have not seen any reports that any bidders (whether for the go-forward stores and remainder of assets or for liquidating bids) have been qualified.
if there was only one qualified bid for the go-forward stores there would be no need for an auction according to the plan (although sears could conduct an auction to let the liquidating bidders pick and choose assets (including picking to bid on assets within the go-forward group of assets) and then sears (through is lawyers conducting the auction) would make a determination what bid, mix of bids, or bid packets produced the best results and then recommending accepting whatever they thought was the best deal.
since there obviously is going to be an auction, it will be interesting to see whether esl is competing against any other "real" go-forward bidders or if he is just competing with liquidators looking to pick the carcass for what's best for them.
regarding lampert putting up the money today, since he has lined up three banks for around $1 billion in cash, shouldn't be any problem getting the money and since only around $17 million is non-refundable, that seems to be lampert's only risk since deposits returned to unsuccessful bidders (excepting the $17 million).
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Lazard has been engaged as investment banker by Sears to advise on the Company’s ongoing restructuring and potential sales of its assets in one or a series of Transactions. As such, the Company has requested Lazard to solicit preliminary Indicative Bids for a Transaction to enable the Company to potentially identify one or more parties (“Interested Parties”) to be invited to proceed with a more detailed due diligence review and, thereafter, to submit a definitive offer (“Definitive Bid”) that may result in the execution of one or more binding purchase agreements with the Company (each, a “Definitive Agreement”).
While it is the Company’s preference, all else being equal, to receive a combined bid for substantially all of the Company and its assets, the Company is also soliciting Indicative Bids for less than substantially all of the Company, whether based upon a going concern or liquidation.
With respect to going concern bids, the Company is soliciting Indicative Bids for a Transaction that includes, but is not limited to, the following target businesses (each, individually, a “Target Business”) or any combination of any assets comprising one or more of the Target Businesses:
•Sears as a going concern (the contemplated go-forward retail footprint, (“Retail NewCo”),2 or Retail NewCo together with substantially all assets and component businesses of Sears, such as Sears Auto Centers, Monark, and Innovel,“Sears NewCo”);
• Sears Home Services (“SHS”), including the business unit PartsDirect (“PartsDirect”); (NOTE, THIS ASSET HAS ALREADY BEEN SOLD)
• SHS, excluding PartsDirect;
• PartsDirect (on a stand-alone basis); and/or • Any of the underlying assets with respect to the Retail NewCo or SearsNewCo on a liquidation basis.
The Company will have maximum flexibility in evaluating the Indicative Bids, including the ability to accept a single bid or multiple partial bids for any assets or combinations of assets that the Company determines to auction, at the direction of the Company’s Restructuring Committee.
With respect to liquidation bids, the Company is soliciting cash and non-cash consideration (e.g. equity, hybrid, fee, debt, or designation rights) bids for part or all of the assets underlying the proposed Retail NewCo footprint and/or Sears NewCo as part of this process.
Auctions may include open bidding in the presence of all other Qualified Bidders. All Qualified Bidders shall have the right to submit additional bids and make modifications to their proposed agreements at an Auction to improve their bids, including by bidding on additional Assets not included in their original Qualified Bid.
The Debtors may, in their reasonable business judgment, and in consultation with the Consultation Parties, negotiate with any and all Qualified Bidders participating in an Auction.
AI
