The letter, signed by Edward Lampert (ESL CEO and Chairman and former CEO of Sears) states, “ESL believes that a future for Sears as a going concern is the only way to preserve tens of thousands of jobs and bring continued economic benefits to the many communities across the United States that are touched by Sears and Kmart stores….We believe there are significant benefits to preserving and maximizing the relationships between and among Sears’ retail business and its other operating businesses. Purchasing them together enhances the value and potential of each by continuing to build on long-held commercial relationships and supporting the synergies created by shared marketing, manufacturing, technology and administrative teams, to name just a few. Our Indicative Bid includes, and is conditioned on ESL’s ability to acquire substantially all of the assets of Debtors, as well as substantially all of the assets of non-Debtors, KCD IP, LLC, SRC O.P., LLC, SRC Facilities LLC and SRC Real Estate (TX), LLC.”
- up to $950 million in cash to be funded with the proceeds of a new ABL facility to be obtained by Newco
- a credit bid of approximately $1.8 billion
- $500 million in a combination of cash, notes to be issued by Newco, equity of Newco and/or waiver or assignment of deficiency claims (including superpriority adequate protection claims) with respect to secured debt the roll-over of approximately $271 million in cash collateral currently supporting the L/C Facility
- the assumption of Sears’ liability with respect to (i) protection agreements issued by Sears Homes Services, (ii) certain gift cards and (iii) accrued points under the Shop Your Way program, in each case on terms to be agreed with the Debtors. ESL estimate these liabilities to be approximately $1.1 billion.
Read more Bankruptcy News
The post Sears Holdings – Edward Lampert’s ESL Makes Comprehensive $4.6bn Bid for Sears, Consideration Includes $1.8bn Credit Bid and $950mn Borrowed Cash appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.