Sears Bankruptcy Case
CNN Reported Wed. February 6th that if Sears survives its bankruptcy, it will need a new CEO. The company’s chairman Eddie Lampert is seeking court approval to buy Sears’ operating assets and keep 425 stores open using his hedge fund ESL. Considering the proposal involves 5.2 billion dollars, Lampert is not using much of his own money. $1.3 billion of the total is coming from banks to help finance the purchase. It is important to note that the lenders state that if someone from ESL is named CEO then in accordance with their contract, they can require the appointment of a chief restructuring officer to oversee the company’s operations.
Judge Robert Drain, the one who will decide if Sears survives or not, sat through nearly 7 hours of hearings on the second day of hearings. The final arguments are expected to have started Thursday. Judge Drain said that he could rule from the bench following the arguments or issue a decision, reports CNN.