Sears plans to unload pensions, close more stores
Eddie Lampert's $5.2 billion offer to buy what's left of Sears is drawing fire from the bankrupt retailer's creditors as well as current and former employees.
The judge who will determine whether to approve Lampert's bid for the retailer, which the billionaire investor still chairs, is hearing from creditors who oppose the deal. That includes the government entity that guarantees pensions when an insured plan closes without enough money to cover benefits.
The Pension Benefit Guaranty Corp., or PBGC, filed a lawsuit Friday seeking to take over the retailer's two pension plans, which cover 90,000 people. The plans are underfunded by an estimated $1.4 billion, according to the agency.
Lampert and his hedge fund, ESL Investment, seem willing to relinquish the liability, as they made clear in a court filing on Friday. ESL's business plan would have Sears emerging from bankruptcy in better fiscal shape because it will no longer be shouldering about $4 billion in debt and pension obligations, the hedge fund stated.
https://www.msn.com/en-us/money/companies/sears-plans-to-unload-pensions-close-more-stores/ar-BBTeGDN?li=BBnbfcN
Doesn't one's pension get reduced if the PBGC takes it over? I guess it's better than no pension at all but it still has to hurt.