https://nordic.businessinsider.com/sears-bankruptcy-creditors-seek-to-sue-eddie-lampert-2019-1
27 replies (most recent on top)
The Secured Creditors will be getting paid pennies on the dollar. If they can recover a greater portion of their claim(s) by liquidation, then don't be surprised if the Secured Creditors start filing objections, as well
I hope Sears and Kmart make it but I hope Eddie is not part of it and I hope he gets what he has coming cuz you know what what goes around comes around mr. Lambert
Oh, so some federal courts keep working but not this one. Mkay.
From uscourts.gov:
“If the shutdown were to continue past three weeks and exhaust the federal Judiciary’s resources, the courts would then operate under the terms of the Anti-Deficiency Act, which allows work to continue during a lapse in appropriations if it is necessary to support the exercise of Article III judicial powers.”
Bankruptcy Courts are Article I Courts, and cannot continue operations in any way, shape or form without funding. They are exercising powers delegated by a Congress to them under the clause in Article I Sec. 8 authorizing Congress to establish “uniform Laws concerning Bankruptcies,” and do not have Article III judicial responsibilities. If the shutdown continues, the BK court will cease operations for the duration.
Yes, looks like they will continue hearing cases, working without pay.
Running out of money only means federal courts will be "postponing or canceling all training and non-case related travel; suspending promotions of current and hiring of new personnel; postponing contractual services and facility improvements; putting all administrative work that is not related to the resolution of cases on hold; and suspending other functions not directly related to carrying out the court’s primary mission of administering justice."
The issue is that Judge Drain himself is not considered essential. The only reason the judiciary has remained in operation this long is because they have an emergency fund that will be depleted on Friday.
It would go to the District Court first, but the same problem remains: Judges are not considered essential. They can declare as much of their staff essential as they want, but not themselves. Appeals also have a hard deadline for when they must be filed after the decision in question is rendered. The shutdown would not stop the clock on that. However, this is all mute until an actual objection is heard and responded to in Court. Not in filings or briefs, but in open Court and the Judge makes a decision on the issue. He’s not going to allow discovery until an actual suit is filed, which still hasn’t happened yet.
Federal court workers I know have all been complaining about their essential status
If Judge Drain doesnt allow discovery on Eddie's nonsense I can see this going to the Court of Appeals and then we'll really be in for a treat.
I wouldn't worry too much about it. Judge Drain will declare certain personnel essential staff and the case will proceed normally. To a certain extent the judiciary is partially self funded.
Setting aside the typical legalese contained in the filings that is more aimed at getting the Judge to agree to entertain the objection, there is another problem. At 5pm tomorrow, the federal courts will run out of money and close and remain closed until the gov. reopens. The hearing for objections is currently scheduled for 2/1, with the sale finalizing 2/10. I’m not sure of the law on the subject, but if the Court is still closed it cannot sign off on the sale. Nor can Sears liquidate or take out any more loans. This is going to be a mess, and if the Judge can figure out a way to settle this mess tomorrow he probably will. It will in all likelihood be in Eddie’s favor, but it is what it is.
Anyone remember GMs bankruptcy? This is but a formality.
Good, I hope he gets screwed over.
Sears endless extensions and preferential treatment towards their former boss Eddie looks like self dealing and conflict of interest
F--- this site's b---s--- censorship
Holy f---ng shït! $učk it again, Mods! Most people go to the toilet to take a dump. I go there to leave one!
The UCC has former insiders, former Board Members, and people intimately acquainted with Sears' inner strategic thinking. It may not be as difficult for them to prove their case as people are thinking.
We're finally reaching the Bruce Berkowitz vs. Eddie part of the Bankruptcy. That was always going to be good popcorn.
The billionaires on the UCC are even richer and even more evil than Eddie. They could make his life miserable just out of spite.
Eddie is just trying to make as much money as he can, like the rest of us......
They can sue but unsecured is unsecured. The secured debt holders are getting paid. They’ll have to prove that he did something wrong which will be difficult.
even better:
"The above remedies would rectify only some of the wrongs Lampert and ESL have
perpetrated on Sears, its stakeholders, and its creditors. Nothing can undo Sears’s excruciating,
slow motion destruction at the hands of Lampert and ESL. But without any such recourse, Lampert
and ESL will have created the perfect blueprint for future bad actors: stack a company’s board of
directors with allies and devotees; with their blessing, raid the company’s cash and assets; in the
process, dismantle operations and put hundreds of thousands of employees out of a job; and,
finally, manipulate chapter 11 proceedings to obtain the company’s remaining assets for a bargain
while falsely claiming to “save” a fraction of the jobs already sacrificed. Throughout these
proceedings, Lampert and ESL have painted themselves as saviors, stating that their bid will save
the few jobs they have not already eliminated—but for how long? They have failed to set forth a
business plan that offers any viable go-forward path. Sears simply cannot survive as a going
concern."
Wanna wager who comes out ahead? Eddie Lampert is BFFs with Treasury Secretary Steve Mnuchin.
Love this line in the first motion filed by the Unsecured Creditors
"ESL’s current bid to “save the Company” is nothing
but the final fulfillment of a years-long scheme to deprive Sears and its creditors of assets and its
employees of jobs while lining Lampert’s and ESL’s own pockets"
See court docket 1598 and 1603. The UCC will sue Eddie & ESL. They want all of Seritage properties returned and are going after the Lands End deal. All of the documents obtained from Sears will soon be public knowledge.
Now this is becoming interesting.
Eddie is lying and has to pretend like he's not liquidating so the judge will let him liquidate on his terms instead of someone else's.
I wish them luck. They might as well go home. Its Eddie's ball and Eddie's court, no pun intended.
I hope they get permission and sue his @ss. Everything Eddie with Sears was to benefit himself and his ESL company. I hope they can stop him.