The $5.2 billion was to swap out, pay down, existing Debt Covenants. How this was structured we do not know as of yet. Even so, That still leaves $2.2 Billion in Debt Obligations which are all hedged in some way shape and or form. Yes there is Unsercured Debt here too and we know They are not Happy. I wonder why that is. The $11.9 in Assets include 'Good Will' which we all know is extremely over rated and over appraised. So what do we really have on the Asset side of the Equation that will amount to $11.9 in real dollars after the fact. ?
Look, Im not trying to be the bearer of bad News. This is just my opinion based on what is already known. There could be more than meets the eye here. Fact is, I haven't seen it, yet. And no one has present a viable argument to the contrary.
But with that said, Maybe, just Maybe, as in many Bankruptcies there is a game called; 'Hide the Sausage'. The idea is that when in Liquidation, Fire Sale Prices abound, what is 'Fair and Equitable' takes the back of the line. Hence when the Debtors in Possession, usually the 1st and 2nd Tier Lenders, take control of the remaining company they restructure the asset liability balance sheet and walk away at a sizable premium to what was Tallied while in BK. Always remember the 1st Tier Debt rules the BK world and Courts. This is the game that most companies play today. Eradicate Shareholders and walk away with the hidden, unaccounted, and or severely under appraised assets. Many Bankrupt Co's re-emerge under a new name but with the same Debt Holders. It has been said many times that the Bond Market is far larger than the Equity Market. Bonds rule. Secured Debt Covenants rule the Bonds. So is that what SHLDQ is doing ?
The joke of it all, and what most Americans simply do not get, is Equity Shareholders really own nothing.
Far too many companies carry more Liabilities than Assets and if they are stating otherwise they are likely lying.
So lets be fair and reasonable with our expectations here, shall we ? Maybe we can call this: SEARS our Great Expectations.
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