On Tuesday, Sears Holdings Corp came to agree considering the revised takeover bid by its billionaire Chairman and former CEO Edward Lampert. The consideration temporarily holds the liquidation process to end a 126-year old departmental store chain in the United States, which owns about 425 stores and employs over 50,000 staff.
Lampert’s previous bid of $4.4 billion was rejected of being in sufficient and he is expected to submit his revised bid on Wednesday, but if still that fell short or still not acceptable to Sears then company has plans to go for liquidation on Monday to get better value of its assets.
For revised bid Lampert has to deposit an amount of $120 million with his revised bid out of which an amount of $18 million will be non refundable, Ray Schrock, Sears bankruptcy attorney told U.S. Bankruptcy Judge Robert Drain at a court hearing on Tuesday without disclosing further details of the new offer.
Lampert, as part of his revised offer, also requested for a legal release over deals he made while he were the CEO of the company and till that time company had not filed for a protection against bankruptcy. But most of the unsecure creditors as of Monday were not willing to grant him the release as they remained emphasizing upon to investigate some of the past deals which made the Lampert company’s biggest creditor by additionally remaining the largest shareholder. Lampert still consider the deals as proper.
Lampert in his revised offer, for ownership of reconstituted company, also proposed to let off his debt of $1.3 billion as a credit bid to which creditors also objected. Till Jan 14 until the auction of the company, all the controversies remain unresolved and whether Lampert can prevail with his bid or not that all will be decided on the auction day, for that Lampert still have to face scrutiny by the bankruptcy judge.