According to the Associated Press, U.S. Bankruptcy Judge Robert Drain approved the $5.2 billion plan proposed by Sears chairman Eddie Lampert to save 425 stores and 45,000 jobs under the iconic brand.
ESL Investments was selected as the winning bidder in the court-supervised bankruptcy auction of Sears Holdings. ESL will acquire substantially all of the company’s assets for approximately $5.2 billion.
According to two Bloomberg articles, Eddie Lambert’s ESL Investments has increased its bid to purchase Sears to $5 billion and hopes to keep the bankruptcy court in its corner by maintaining more jobs than initially proposed.
According to the Pittsburgh Post-Gazette, ESL Investments, the hedge fund run by former Sears CEO Eddie Lampert, submitted a $4.4 billion bid to keep Sears afloat, coming in just under the wire before Friday’s filing deadline.
According to a report from CNBC, Sears chairman Eddie Lampert and his hedge fund, ESL Investments, only have until the end of the day today to officially submit a bid to buyout and potentially save the 125-year-old Sears company.
According to Reuters, Sears Holdings is in the final stages of negotiations with Great American Capital Partners and other lenders for $350 million in bankruptcy financing. The funds would be used to keep retail locations open through the upcoming holiday season.
Sears Holdings is seeking court approval for Service.com to serve as a stalking horse bidder on the Sears Home Improvement business in a Section 363 sale. Sidley Austin is advising Service.com on the transaction.
Sears Holdings filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York. Bank of America is serving as administrative agent for $300 million of senior DIP financing.
Sears Holdings amended its March 14, 2018 credit agreement, with UBS, Stamford Branch serving as administrative agent and UBS Securities acting as lead arranger and bookrunner.
Sears Holdings’ board of directors received a letter from ESL Investments, the hedge fund led by the company’s Chairman and CEO Edward Lampert, proposing to buy the company’s Kenmore appliance division, Sears Home Services and PartsDirect.