https://seekingalpha.com/article/4102812-sears-collateral-coverage-event?auth_param=1cs54k:1cqbsb7:500ab24e398513a7ee410bfa195e2496&dr=1&utoken=ad6cfcec0988e57a4ac416f7901245b0
Based on its most reason quarterly reports, Sears Holdings Corporation may have triggered a Collateral Coverage Event as defined in its Senior Secured Notes.
How the company treats its off balance sheet letters of credit outstanding (which have a first lien on the collateral) is essential.
If it has triggered a Collateral Coverage Event, the situation will need to be remedied which will drain cash.