Eddie Lampert, the billionaire behind Sears, has put forward plans to buy out of bankruptcy “substantially all” the assets of the collapsed department store chain through his hedge fund ESL.
ESL said the bid valued the assets at $4.6bn, of which $1.8bn comprises a so-called credit bid, in which the hedge fund would forgo claims on Sears debt. The retailer filed for Chapter 11 protection in October.
The rest of the bid would be funded from other sources including cash and new lending facilities, for which ESL has yet to secure backing.
Sears has until December 15 to name a stalking horse bidder for its assets. Its plan will ultimately be subject to approval from a bankruptcy court.
ESL is being advised by Moelis. ESL said: “We believe that our strategy will enable Sears to prosper in an integrated consumer and retail landscape and view a going concern transaction as essential to providing optimal value to stakeholders.”