Author Topic: SHLDQ - Sears Holdings Corp  (Read 2625368 times)

bizaro86

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Re: SHLDQ - Sears Holdings Corp
« Reply #9270 on: November 29, 2018, 12:16:16 PM »
What makes you think that debt will be converted and not left behind?

Are you asking me? I don't particularly think it will be converted. I think they'll liquidate the vast majority of the company, and maybe sell a rump business to ESL on a credit bid. I think as the process continues the 1st Lien will get paid out, and the 2nd lien will get some payout (up to the amount of security left). Then I think the 2nd and the SRAC will split the remaining funds.

It's also possible that the 2nd/SRAC end up with equity in a new rump sears.

Or are you talking about the guarantor/non-guarantor stuff? Because imo that is basically all nonsense. The holding company filed, and all of the subs equity is owned by the holding company. The subs (including non-guarantor) are assets available to satisfy its debt to the extent they aren't pledged to someone else (mortgagees, pensioners, etc).


BeerBBQ

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Re: SHLDQ - Sears Holdings Corp
« Reply #9271 on: November 30, 2018, 05:41:19 AM »
On a liquidation of 2nd, what do you think the recovery will be and how do you get there?


Gregmal

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Re: SHLDQ - Sears Holdings Corp
« Reply #9273 on: December 06, 2018, 07:23:51 AM »

bizaro86

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Re: SHLDQ - Sears Holdings Corp
« Reply #9274 on: December 06, 2018, 11:58:28 AM »
I really don't like that bid. I also don't see why shop your way points holders should  get par when the 2nd lien is going to take a big haircut...