https://www.google.com/amp/s/www.wsj.com/amp/articles/bankruptcy-judge-pushes-new-sears-to-resolve-dispute-with-old-company-11553203211
11 replies (most recent on top)
This judge is useless...
I could be wrong but in my readings old Sears needs this money to pay claims. Especially to the court and Judge Drain. I don't believe he will let this one slip by.
Translation: this court better get paid f---head or I'll think the fire
New sears, old sears... all still Eddie's . This is stupid
Worst case is he makes Eddie pay and holds someone in contempt of court for a stiff fine. Eddie will argue and try to get mediation so he can keep the cash or at least a portion of it. I’m sure with a few weeks left he will push it as far he can just like the deal to buy the company because he knows he can.
Second worst case he has to pay and doesn’t get contempt.
Best case (for Eddie) is he somehow gets to keep the cash. This will stiff the creditors of whoever was supposed to get his money (probably oldco lawyers).
He uses a smaller legal team so this will cost him maybe $200k to fight this for $57 million. It’s a good calculated gamble. Anything he recovers over $200k is a win for him.
What's the matter that the judge will rule for the 18th of April? I mean what if he doesn't side with his skull member what will happen?
This is a pittance of cash for Eddie, he’s jut being greedy and trying to wring every last drop he can.
From the NY Post:
Judge advises Lampert’s firm to pay back millions swiped from Sears
By Lisa Fickenscher
March 21, 2019 | 10:21pm
Eddie Lampert
Eddie Lampert Patrick McMullan via Getty Image
A bankruptcy judge has “strongly” advised the company that bought Sears out of bankruptcy to hand over millions of dollars to the old Sears.
At a Thursday hearing, Judge Robert Drain weighed in on the contentious financial dispute between Sears and Transform Holdings, the firm owned by billionaire investor Eddie Lampert’s hedge fund, which bought most of Sears’ assets out of bankruptcy last month.
Drain seemed to side with Sears, which says Lampert’s Transform swiped tens of millions from its coffers in the days before it closed on a $5.2 billion deal to create a new, smaller Sears chain with 425 stores.
The judge warned that if Transform does not return the funds — about $14.6 million in credit card receivables and $18.5 million in cash — that it could be in violation of an automatic stay and liable for damages.
“He told both sides: ‘You have a contract; live up to it,’” according to David H. Wander, a partner of Davidoff Hutcher & Citron.
Drain indicated that he’d settle the matter at a hearing on April 18.
This is beyond messed up! Sears is done for sure this time. How the court let him get this far is anyone's guess.
Article is paywallled. Anyone have the text?
He should be found administratively insolvent. This is BS, enough is enough... Shut it down now! Stop the ridiculousness already, why is he so stupid in wanting sears so bad. Greed will always consume people.