He was supposed to produce proof today that he had the money to pay it. Or is he just going to brush that off?
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@1qgw - Yes, but there was a reserve requirement that was supposed to be met on Monday.
"A large debt payment is hanging over Sears' head next month. Time is running short, as Sears previously disclosed it faces "significant near-term liquidity constraints" pertaining to debt maturity reserve requirements it must meet by this upcoming Monday. The reserve is associated with a note that has a $134 million maturity due on Oct. 15."
https://www.cnbc.com/2018/09/28/sears-is-close-to-having-its-stock-delisted-from-the-nasdaq.html
Sears october 2018 bonds maturity date is 10/15/2018 so there is still 13 days.
And there is also a 30 days grace period before declaring bankruptcy if they don't pay at this date.
"Oct 05th"? I thought it was Oct 15th.
They had enough room to borrow and pay for the loan.. there's no way they had enough cash to pay for the loan.
The debt is not due until Oct 05th.
It would remain for the lender to call a default. It is possible there was no technical default; even if the time comes and no payment is made. The borrower (SHLD) can come to the lender indicating they need another day.. another week etc. to pay; and if the lender comes to a new agreement that is not a default. The lender could even allow a rollover on new terms.
Defaulting on a debt, even a technical default, is definitely a material event that would require an 8-K to be filed with the SEC. But Sears would have four business days to do that.
He only had to deposit a reserve. He may or may not have down that. It is a (partially) private matter that may not be required to be made public. It is primarily up to the lender to keep it private or make a default/omission publicly known.