Hi Linda... got a question...or two
That docket applies to SHLDQ which had filed for protection under Chap 11, correct?
So, if that be the case and the company was bought out right, prior to submission of a reorganization plan, would that docket still apply?
Lampert got approval to buy the "whole" company, whatever was on the table. The rest of the company that was unprofitable will be sold off as needed to pay off creditors. Correct?
The rest of the company (425 stores) that is still open and doing business, are the ones that were authorized to be purchased in today's ruling.
In reality then, SHLDQ as we know it, will spin off into a NEWCO. Eventually issue new stock in relationship with the newly formed company. The "Old" stock gets retired and shareholders of record will get the new issue. But let's say that the Old SEARS is kept. For trademark rights and branding rights i.e. Craftsman, Kenmore brands. No new shares need be issued, ESL does a stock buy back for the float and all is good.
Point is, SHLDQ now has a New Owner. Lampert did not buy the company to lose money nor intends to. He had too much invested to see it ripped apart, since he and his ESL Holdings would lose mose if not, ALL of their stake in SEARS / KMART. So the only alternative was to buy it out right and take control. Creditors see this as a threat, since now, they have to wait to even get what they want out of the liquidation. In the meantime, life goes on and SEARS becomes profitable again.
Dragon52
