ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Railways
  • World
    • Economy
    • Politics
    • Markets
  • Survey
  • videos
  • photos
  • ZNAA'22
  • Trending News
    • Viral News
    • Travel
    • People
    • Entertainment
    • Sports
  • More ...
    • VIDEOS
    • PHOTOS
BREAKING NEWS
  • Tata Motors to buy Ford India's Sanand factory for Rs 726 crore
  • At NITI meet, PM Modi gives mantra of 3Ts, modernising agriculture to Chief Ministers in big push for 'Atmanirbhar Bharat'
  • Majority of employees want hybrid work, not work from office - An insight
  • Oil slides further amid recession fears, slow recovery in China imports
  • Commonwealth Games schedule India day 11, August 8
Read in App
Business News » World News

Sears chairman submits new $5 billion bid to save bankrupt retailer

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App

Sears Holdings Corp Chairman Eddie Lampert submitted a revised takeover bid of more than $5 billion for the company, according to a regulatory filing made on Thursday, significantly increasing the likelihood the U.S. department store will be able to stay in business.

Sears set a Wednesday deadline for Lampert to submit a new offer for the retailer and a $120 million deposit, after the billionaire hedge fund manager`s earlier $4.4 billion bid fell short. The chain, which includes Kmart discount stores, had decided to ask a U.S. bankruptcy judge to pursue liquidation Tuesday morning, before giving Lampert more time to improve his offer.

His new bid, made through an affiliate of his hedge fund ESL Investments Inc, assumes more than $600 million in liabilities, including taxes, vendor bills and other expenses Sears has incurred since filing for bankruptcy protection last October.

"We believe our proposal will provide substantially more value to stakeholders than any other option, in particular a liquidation, and is the best path forward for Sears, its associates and the many communities across the United States touched by Sears and Kmart stores," a spokesperson for ESL said in a prepared statement.

Sears will consider Lampert`s offer against a possible liquidation during a Jan. 14 bankruptcy auction.

The bid will preserve up to 50,000 jobs. Sears employed about 68,000 people when it filed for bankruptcy.

A group of Sears creditors, including some landlords and vendors, has been calling for the chain to shut its doors for good, saying they will recover more money in that scenario. They also say that suing Lampert over past deals he has done with the company will help boost how much they recoup.

Lampert, however, has requested as part of his new bid that he would no longer have to face those lawsuits. For that right, a so-called "legal release," Lampert is offering $35 million cash, according to the filing.

The new offer takes on roughly $166 million in payment obligations to vendors and $43 million in additional severance costs. The hedge fund will also assume $135 million in tax bills for properties that Lampert hopes to acquire as part of his bid.

To finance the new offer, ESL has received debt commitment letters from lenders for a new asset-backed loan.

ESL and hedge fund Cyrus Capital Partners LP, which was a creditor of Sears before its bankruptcy, will also provide debt financing, including a new real estate loan, according to the filing.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Economy
Updated: Thu, Jan 10, 2019
10:30 pm
Reuters
RELATED NEWS
UP $1 trillion economy :  Yogi Adityanath government signs MoU with Deloitte India to achieve target UP $1 trillion economy : Yogi Adityanath government signs MoU with Deloitte India to achieve target
Need to boost manufacturing to create jobs, says Mahindra Group chairman Anand Mahindra Need to boost manufacturing to create jobs, says Mahindra Group chairman Anand Mahindra
RBI MPC: Banks with higher share of floating rates to do well in this higher interest rate regime, says Naveen Kulkarni of Axis Securities RBI MPC: Banks with higher share of floating rates to do well in this higher interest rate regime, says Naveen Kulkarni of Axis Securities
Next RBI MPC meeting date - Schedule details Next RBI MPC meeting date - Schedule details
Why is crude oil price falling? Brent hits lowest since start of Russia-Ukraine war Why is crude oil price falling? Brent hits lowest since start of Russia-Ukraine war

LATEST NEWS

SBI share price drops 3% after net profit declines in Q1; brokerages remain bullish, raise target prices; Here's what they recommended

Oil slides further, falls below $95 per barrel amid recession fears

Commonwealth Games schedule India day 11, August 8: Badminton, Table Tennis and Men’s Hockey on final day in CWG Birmingham - Details

Coal India dividend 2022: Check record date, amount and payment date

Commonwealth Game 2022 Medal Tally: Indian medal winners at Birmingham CWG after day 9 | Full List Here

Market next week: Global cues, macro numbers, last batch of earnings to dictate D-Street in holiday-truncated week: Experts

India poised to achieve $5 trillion economy dream through ‘Atmanirbhar Bharat’ strategy, says expert

Inflation alert! Bangladesh increases petrol price by over 50%, diesel price goes up by 42% | What led to this steep hike

Commonwealth Games 2022: Nitu Ghanghas grabs Gold on debut

In conversation with Anil Singhvi, Basant Maheshwari says dollar may touch Rs 225-mark in next 25 years

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2022. India Dot Com Private Limited. All Rights Reserved.
LIVE TV