Sears Holdings, which owns Sears department stores and Kmart, filed for bankruptcy on Oct. 15. In previous court filings, it has said it was in talks with ESL about a “going concern bid” that could help the company emerge from bankruptcy.
Sears Holdings Corp Chairman Eddie Lampert is in discussions with at least one potential partner to contribute to a $300 million bankruptcy loan.
StockMarketNews.Today – Lampert’s hedge fund, ESL Investments Inc, has held discussions with Cyrus Capital Partners LP, an investment firm that holds some of Sears’ existing debt, about sharing the burden of funding portions of the $300 million loan, which would be separate from another $300 million bankruptcy loan that Sears’ banks have offered to provide, the sources said.
Sears Holdings Corp in recent days reached an 11th-hour deal with lenders that will allow the troubled retailer to keep hundreds of its stores open through the holidays.
StockMarketNews.Today – The plan that Sears and its lenders reached over the past week isn’t unfamiliar. Dozens of retailers have sought chapter 11 protection in recent years, namely because of the consumer shift to online shopping, expensive store leases and heavy debt burdens.