Sears seeks bankruptcy loan partner: Report

By U.S. EconomyFOXBusiness

Should Sears CEO Eddie Lampert be blamed for the company’s downfall?

Layfield Report CEO John Layfield, Kadina Group president Gary B. Smith, former Obama economic adviser Robert Wolf, FBN’s David Asman and Dagen McDowell on Sears filing for bankruptcy protection.

Sears Holdings’ Chairman Eddie Lampert is seeking a partner to contribute to a $300 million bankruptcy loan, as reported by Reuters.

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ESL Investments Inc. – Lampert’s hedge fund – has held discussions with Cyprus Capital Partners, according to people familiar with the matter, about sharing the burden of funding portions of the $300 million loan.

This would be a separate loan from the other $300 million bankruptcy loan that Sears’ banks have offered.

Sears filed for bankruptcy on Oct. 15. The company will continue operating for now, but will go through significant changes, including closing unprofitable Sears and Kmart stores, and its survival will depend on credits and suppliers continuing to work with the company.

The $300 million bank loan, from Bank of America, Wells Fargo, Citigroup and others, is first in line for repayment in Sears’ bankruptcy and the $300 million loan that Sears is seeking from lenders will be repaid after.

Sears has not turned a profit since 2011.