I thought KCD were fenced assetts fo the pension. Are we going to watch these go down the drain to keep the lights on for another 8 months?
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There has been no cash from the sale yet and the date of closure of the deal is not known. The SEC has to clear it of antitrust concerns. When the cash comes it goes to the pension.
I have to believe the incoming administration will not be very happy if the Pension Guarantee Trust folks drop the ball and sticks the country with the bill. Regardless if an insider is part of the new administration or not.
I'm willing to bet the pension gets the big share of these assets.
Poof its already gone... they just borrowed 500 mill from Eddie and got 500 mill up front for crafstman
losses have accelerated to more like 7 million a day. Eddie had to sell craftsman to have the cash to make about a 400M pension payment due by end of the fiscal year. I would venture the other 250m due in 3 years will also go to fund the pension shortfall. Remember Sears was in violation of the pension agreement when the stock fell below 1B market cap.
Craftsman/Kenmore/Diehard were taken by the pension fund to have something to sell in case SHC did not fund the pension/ If they were sold, like Craftsman was today, that money goes to fund the pension. The money does not go toward keeping SHC alive, the end is coming like a freight train now. Company is worth less than yesterday, they burn $5 million a day and they had to borrow money right after the holidays, when they should have lots of cash, to keep the lights on. All are bad signs that the end is near.
Sears retail operation is a crematorium...any money fed into it goes nowhere but up the stack in smoke. The money from the Craftsman deal is just another thing that is doomed to be nothing more than a pile of ashes.
Sadly, what doesn't go towards pension obligations, vendor payments and taxes will be burnt up instantly. Sears loses $5 million a day.