Replies to post #35586 on Sears Holdings Corp. (fka SHLDQ)

[alexbh2285]

It's not on the lap of taxpayers - it's on the lap of now SHLDQ shareholders and creditors - bondholders such as bond funds and hedge funds etc, trade creditors, and bank lenders.

and you can run like that in the US. The US bankruptcy courts are very friendly to creditors (and especially to secured creditors) whereas employee considerations are very low compared to for example a European bankruptcy.

It's the legal system we have so yes - Eddie CAN mess it up, play golf, remain rich - etc along with many who have levered up companies and caused them to go bankrupt - many getting richer with fees or salaries along the way. It's not how all would like it to be but it is how it is.

[rc1968]

What is it missing HERE. So clear.

yes its very clear I really don't know what you are missing but obviously something and I have tried to explain things multiple different ways.

In the U.S, you just CAN'T run like that without being RESPONSIBLE for the MESS you spread.

Yes you can run away from your messes like this. That is what the BK does, it screws the creditors and shareholders. They are the ones that lose their money. Stocks are not deemed "safe" investments for that very reason.

ESL - SHLDQ - SEARS - Lampert - NOLs - lawsuits are all in the same basket.

No they are not. They are interrelated but you absolutely need to know who owns what and who is responsible for what.

ESL is owned by Lampert. Transform is owned by ESL. Sears is owned by Transform. SHLDQ is owned by the shareholders but it has no assets and $6B in debt. The NOLs are owned by Transform. The lawsuit is SHLDQ suing Transform/ESL/Lampert. Transform/ESL/Lampert are unfortunately not responsible for the debts except what may be recoverable from the lawsuit (but it is only $2B and no where near enough).

Let me guess, the 6 billion in debt are on the lap of the tax payers,

No this is in the lap of the creditors who are not going to get that money (well 2.5% of it). That money is owed to people who lent SHLDQ money and by suppliers of products sold to SHLDQ. My company is owed a 6 digit sum as a supplier.

If you believe the owners should be responsible (and I certainly do) then I think all shareholders should be responsible and they should pony up $55 per share they own to cover the $6B in debt. Unfortunately that isn't how it works and any shareholder is lucky that it doesn't.