please sticky, important for mr. madness
while private stocks may only be traded on otc, not all stock traded on otc are private.
you are correct that shldq is the stock associated with sears holdings
however, shldq is NOT currently private
the reason shldq is trading otc it that it did not meet the listing requirements of nasdaq which delisted it. it was not delisted because it was private and it did not become private because it was delisted.
eddie has nothing to do with shldq. eddie's company which is associated with purchasing the assets of sears holdings is transform holdco. transform holdco is a private company, sears holding is not.
lastly, all this nonsense about $5/share value is just that, nonsense.
Rule 13d-3(d)(1)(i) states that a security holder is deemed to beneficially own any underlying securities that the security holder has the right to acquire within sixty days, including the right to acquire through conversion.
various lampert entities hold derivative securities which give them the right within 60 days to acquire 200 shares of (currently) shldq stock in exchange for $1000 in principal amount of the second lien term notes they hold. it is a right, not an obligation. if you bother to go back through the prior 13 D filings, you will see this same language about the 60 days in each of them. whether one filed this week, last month, or last year, that same language is there applying to the same underlying securities.
if those derivative securities are not converted, the lampert entities still hold the loans, which are secured, and which have priority to be paid by shldq as part of shldq's continuing bankruptcy process.
this is not some wink to shldq stockholders that eddie is buying in, the "q" will be dropped and the stock will commence trading on nasdaq at $5/share.
