the only thing HUGH about this is the realization that shldq is an empty shell. the following is from docket 7, the dip order:
As further described in the Riecker Declaration, the Debtors’ immediate objectives in these chapter 11 cases are to: (i) commence going-out-of-business sales at approximately 142 four-wall EBITDA-negative stores; (ii) evaluate certain stores whose financial performance may be improved through rent reductions or operational modifications and make decisions consistent with those determinations; (iii) conduct sales of non-core assets, including real estate, pursuant to section 363 of the Bankruptcy Code; (iv) pay down the prepetition indebtedness from the proceeds of the going out of business sales and sales of noncore assets; and (v) sell as a going concern, pursuant to section 363 of the Bankruptcy Code, or reorganize around, a reduced footprint of stores (the “Going Concern Exit”). The proposed financing is designed to allow Sears to achieve these objectives.
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pay particular attention to (v) above. the purpose of obtaining the dip financing was to achieve one of two options. (1) sell as a going concern, pursuant to section 363 of the bk code (this was the the path they chose when shldq decided to sell substantially all of their go forward assets to holdco), or (2) reorganize around a reduced footprint of stores (the "going concern exit").
since shldq chose door #1 (sell substantially all of their go forward assets) door #2 is no longer available to them.
their will be no reorganization since after selling substantially all of their assets there is nothing left but an empty shell.
shldq told everyone this once again in the recent 8k where they advised the common shares would be worthless and they would be issuing a por memorializing that fact.
