I don't think a ch 11 POL discharges all of the small business debts ?? ..which is kind of the point..but we're in uncharted waters here so I simply am not certain..we'll find out what they have in mind if they go with a ch 11 POL.
It goes without saying that what we have here is complex. We may never see another situation like we have with this multi-billion dollar Sears bankruptcy that turned into multi-billion dollar asset sale to the ex-ceo who happens to be the 1) the largest equity holder 2) the largest and #1 secured creditor..and 3) owner of the hedge fund that purchased all of Sears assets worth buying. You won't see that every day!
I not certain but I think any "plan" put forth, including a plan to liquidate (POL) must be voted on by the various classes of securities. If so Eddie has a "conflict of interest"...which may determine how Sears gets liquidated ..and by whom. Will it be the DIP..or the court appointed Trustee? If pushed I think it will be a Ch 7 Court appointed Trustee.
Bankruptcy is expensive business for all parties involved. The estate has allready said it is "adminstratively insolvent" which means prolonging a ch 11 is not likely. The likelihood of a "successful" liquidation no matter who comes up with the POL wherein all debt claimants get 100% paid is simply impossible..not gonna happen. And my guess is a Trustee is the cheapest and fairest way to go and quite possibly the only legal avenue considering ESL's various positions in all of this. ??
In faith there is enough light for those who want to believe.. and enough shadows to blind those who don't. ~ Blaise Pascal
AI
