This article just came out today. Interesting about how Edward Lampert has gone about delaying the bankruptcy declaration until after July 8th.
http://host.madison.com/business/investment/markets-and-stocks/dead-stock-walking-sears-holdings-has-nowhere-to-go-but/article_4ad054a3-7ac0-55f8-88b0-df468a2e91ac.html
Sears was in the dumps long before EL. He just dragged it out 10 more years.
Mr Lampert will get his stores, the pension will get shoved on the taxpayers, and Sears will be history.
There's enough money involved in this to silence anything also to the contrary.
( Plus having your buddy as treasury secretary doesn't hurt)
Well done Sir, well done.
I guess we will find out soon enough. If not july, then if we don't get Christmas stuff in sept maybe that will be the telling of what's about to come. It's truly sad how EL has ruined a great company all out of GREED!!
Eddie paid 40 million to settle one Fraudulent Conveyance with SRG; case others can come .
eddie isnt delaying anything....make no mistake about that. The fraudulent conveyance for SRG is a red herring.
The Vice Chancellor that presided over the cashe when sears shareholders(ex-shareholders) tried to bring a suit against eddie in regards to the fraudulent conveyance over the sale of SRG.
Basicaally, the shareholders(representing a whole 3% who did not receive SRGshares as a result of the rights offering ) was basically told to piss off.
I quote the following from the article. My edits in curly braces, {}.
During the settlement hearing:
The court expressed “concern” that the plaintiffs’{the 3% who didnt participate} theory “elevates form over substance to a degree that, at least historically, has been inconsistent with how a court of equity looks at transactions.”[3]
{Basically, they were throwing a hissy fit}
Without “hazard[ing] any guess” about what standard of review would apply,[4] the court observed that “quite likely there is none or minimal harm here,”[5] as damages (if any) would most likely be capped at 3% of the alleged underpayment (assuming such underpayment were proven) to account for the fact that the remaining 97% of stockholders were not harmed at all.[6]
{Basically, 97% of he share holders weren't harmed and that resulted in very little harm. I would have liked to get 97's on spelling tests back in grade school}
The court noted that it is nonetheless “entirely rational for the defendants to settle this case as they did, because . . . [w]e’re talking about litigation that would cost far more to defend than settle,” particularly because the economic cost of the settlement to the defendants was much less than the nominal $40 million, since much of the payment was “moving money from one pocket to another.”[7]
{Basically, its cheaper for ESL to pay $40m then it is to take this to trial where its likely they (ESL) will win.}
The court reduced plaintiffs’ requested fee award from $6 million to $4 million, saying it was already generous and, having found that the suit could be seen as a “strike suit” which should not be incentivized, did not want to encourage such suits being brought in the future.[8]
{Fee award is just teh money that goes to the lawyers to act on behalf of the plaintiffs (the 3%) .The VC is basically saying I am reducing the amout the lawyers get so that they arnt incentivized(at least less) to bring more cases like this forward.}
Heres a link to the article. Im open to other interpretations: http://www.clearymawatch.com/2017/06/chancery-court-suggests-rights-offerings-may-limit-liability-transactions-controlling-stockholders/
I know he wont go bankrupt 2017 its going to be 2018 notice how one of the biggest factor is how he delayed to pay the loan until January 2018. He is just trying to squeeze as much as he can how the poster below mentioned.
He will do another short squezee