Thread regarding Sears layoffs

krl– sorry to bust your bubble, but if Transformco goes under you and many others will lose their jobs. If SHC or any of the other litigates in a lawsuit against Eddie or ESl win their case then any plans for going forward will be kaput. If the vendors continue to refuse to ship new merchandise to stores than the end is near. Get a clue. Everything that happens in the courts has a direct impact on your and others future employment. Ignorance is not bliss. That is why so many people who have lost their jobs have been "surprised" by closings and layoffs. They have drank the Kool Aid.

"It currently has no bearing on Transformco at this time. Though it could result in tougher times ahead for the beleaguered TransformCo"

This is true. But let's not forget the current legal battle over the Asset Purchase Agreement, aka APA in "Old Sears" vs. Lampert, and Lampert vs. Old Sears. Sears Holdings accuses him of allegedly stealing assets from the company which resulted in its filing of Chapter 11.

Lampert was CEO at the time of Sears Holdings' Chapter 11 filing. He also was in charge of the company's operations. The big problem is the man, himself. I wouldn't be surprised if some vendors and suppliers sued Lampert and his ESL Hedge Fund.

Someone had posted in another thread that the Justice Department, SEC, and IRS should launch a probe of Lampert's businesses dealings. I agree 100%. Sears Holdings opened the door of a possible probe by federal authorities. They accused Lampert of "siphoning" Sears Holdings' assets to his other companies. Intentional theft of assets-of a publicly traded company-is a felony.

Lampert's legal troubles will the feds will be worse than Chapt. 11. Much worse.

It will eventually be Chapter 7. I'll believe it when I see it. They are basing it on "future projections of revenue." Good luck with that scenario.

No 2nd BK. Just the finalization of the Old Sears debtors and SHLD liquidation plan. It currently has no bearing on Transformco at this time. Though it could result in tougher times ahead for the beleaguered TransformCo.

What does this mean? I don't get it.

I guarantee this will end up as a Chapter 7 bankruptcy. The company and even the court recognized that the money isn't there to satisfy the claims and they are "relying on money flowing in in the future." Also, the lawyers, advisers, and foreign vendors will likely continue to litigate against Sears Holdings thereby chewing up more money in legal fees, This thing is far from over.

This has nothing to do with the topic of this site, which is layoffs. This has virtually no impact on the current stores. While this may be important to some investors, it has no bearing on stores being closed or people being laid off, so not sure why it's posted here.

@11qLV6rY-bgl Haters of what? You also honestly think this is going to make things better for the "new" Sears? Not really. Nothing has changed.

@@11qLV6rY-

This is SHLD. Not an 11. A final disposition to Old Sears. Their plan was submitted back in April, 2019. The court has amended it so some people will get paid back before attorneys consume what little is left. He even made some spent funds get repatriotized into the liquidation account. All in all, a Great decision by the court.

More like, “Guess you’re sticking around and arguing in court a little while longer eh Old Sears? Getting some coin... maybe... at an undetermined date at some point in the future depending on how many coins are left.”

What does this mean?

Shld is liquidated with payouts to debtors according to their own plan filed last April. Did you even read the article?

So for the people in the back, what does this mean for NOW?

So old Sears has declared a SECOND Chapter 11?!

Court approves Sears liquidation plan

By Soma Biswas

Published: Oct 7, 2019 8:41 p.m. ET

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Sears Holdings Corp. won court approval Monday of a chapter 11 liquidation plan requiring suppliers that kept its shelves stocked in bankruptcy to wait for their money or take a discounted payoff.

Judge Robert Drain of the U.S. Bankruptcy Court in White Plains, N.Y., said he would sign off on a creditor repayment plan despite the company's admission that it doesn't have the cash to pay essential bills, including tens of millions of dollars owed to companies that supplied goods while Sears tried to stay afloat earlier this year.

The decision marks the "beginning of the end" of Sears's bankruptcy case after nearly a year, said David Wander of Davidoff Hutcher & Citron LLP, a lawyer for a number of Sears vendors and creditors. The ruling is good news for all Sears creditors, which can finally look forward to repayment at some point in the future, Mr. Wander added.

Judge Drain said Monday that the Sears shell company left behind after former Chairman Edward Lampert bought out the best stores is projected to be short by $36.5 million to $104.5 million in covering the payment obligations it needs to meet before exiting bankruptcy. Under the liquidation plan, unsecured creditors will recover 2.5 cents on the dollar.

The plan will become effective once money starts to flow into the bankruptcy estate from potentially preferential payments that went out the door before Sears filed for bankruptcy, Judge Drain said. Sears's bankruptcy estate could rake in about $50 million from those preference claims, Judge Drain said.

Cash is scarce in the bankruptcy case, with about $46 million available for unsecured creditors, according to testimony during the confirmation hearing that began earlier this week.

Acknowledging the company's dire financial straits, official committees representing Sears creditors and retirees agreed to support the bankruptcy plan, as did the Pension Benefit Guaranty Corp., a quasigovernmental agency that absorbed unpaid pension obligations.

Some Sears suppliers balked, objecting to what they saw as favorable treatment for lawyers and advisers to the company who already earned $150 million as of Feb. 11, when a majority of Sears stores were sold off. The professionals have claimed another $50 million in fees since then, according to unhappy vendors. Judge Drain said the collection of that $50 million should be deferred.

Another source of recovery for Sears's unsecured creditors is a lawsuit funded with $25 million against Mr. Lampert, his hedge fund ESL Investments Inc. and others for deals that allegedly drained billions of dollars of assets from Sears.

A group of foreign vendors that aren't being paid under the plan are likely to continue litigating against the Sears bankruptcy estate.

"Right now the foreign vendors aren't getting anything because [Sears is] objecting to their claims," Mr. Wander said.

Foreign vendors have been locked in a dispute with the company since last year over whether their claims for goods shipped within 20 days before Sears filed for bankruptcy should be treated as administrative expenses and given top payment priority.

The new company running hundreds of stores salvaged by Mr. Lampert is already closing locations and liquidating inventory, while it fights the bankruptcy estate over the terms of their agreement.

Most of Mr. Lampert's acquisition came in the form of debt forgiveness after he spent years lending money to Sears.

Investment funds that bought Sears claims at discounted prices also agreed to support the plan, which allows them to get 75% of what they are owed quickly, as long as they sign away the rest.

Write to Soma Biswas at soma.biswas@wsj.com and Peg Brickley at peg.brickley@wsj.com

Told Ya. Bye Bye old Sears. Getting some coin soon. Love Ya Drain!

Yes! I Love It. Back off you haters.