Sears ... better off dead ?
Chairman Eddie Lampert wants to keep Sears Holdings Corp. alive, but a group of the company’s creditors says they’d be better off if Sears were dead.
The plan envisioned by Lampert amounts to “an unjustified and foolhardy gamble with other people’s money,” the unsecured creditors committee said in court papers on Friday. Staying in operation long enough to allow a sale would burn through as much as half a billion dollars, which should instead go to creditors, the group said.
Sears filed for bankruptcy protection Oct. 15 after years of decline, and on Nov. 2 proposed to auction off its highest-performing stores. That could open the way for Lampert, Sears’s largest shareholder and creditor, to hold on to the best parts of the retail empire without spending a dime by making a so-called credit bid — trading the debt he holds for ownership.
But Sears can’t be saved, the unsecured creditors group said. The company’s plan “appears to be nothing more than wishful thinking,” it said, leaving the group “no choice” but to request the bankruptcy court deny the request to pursue the store sale.
https://www.dailynews.com/2018/11/12/sears-sale-plan-blasted-by-creditors-who-say-chain-is-better-off-dead/
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