Law.com Subscribers SAVE 30%
Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
Take-Aways from the Sears Sale Process
As widely reported, the downfall of Sears was a slow-motion train wreck. The company had lost $10 billion since 2012 and closed 700 stores in the last two years. The Sears Chapter 11 sales process involved a complicated auction structure designed to sell several different types of assets including stand-alone businesses, and real estate. Despite its unique size and complexity, however, some of the strategies and techniques used by the stakeholders in Sears can be applied in cases of any size.
Background
For several years prior to the Chapter 11 filing, Sears engaged in a series of “financial engineering” moves including stock buy-backs, spin-offs of assets such as the “Land's End” brand, and transfers of substantial amounts of real estate to Seritage Growth Properties, a REIT. Throughout that time period, Eddie Lampert, through his fund ESL Investments, Inc. and other affiliates (collectively, ESL) extended secured credit to Sears and when the bankruptcy case was finally filed, ESL held claims exceeding $6 billion.
After the Chapter 11 filing by Sears, ESL made the only “going concern” bid for the assets, which would keep 450 Sears stores operating and preserve thousands of jobs. The bid, which included a cash component and a credit bid of approximately $5.3 billion, was based upon ESL's secured claims. The secured claims were the subject of a potential objection by the unsecured creditors' committee (UCC), but more on that later. The only other bid for the same assets was an untenable liquidation bid made by a group of liquidators.
This premium content is locked for Entertainment Law & Finance subscribers only
ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN ENTERTAINMENT LAW.
- Stay current on the latest information, rulings, regulations, and trends
- Includes practical, must-have information on copyrights, royalties, AI, and more
- Tap into expert guidance from top entertainment lawyers and experts
Already a have an account? Sign In Now Log In Now
For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473
New York's Latest Cybersecurity Commitment
On Aug. 9, 2023, Gov. Kathy Hochul introduced New York's inaugural comprehensive cybersecurity strategy. In sum, the plan aims to update government networks, bolster county-level digital defenses, and regulate critical infrastructure.
Law Firms are Reducing Redundant Real Estate by Bringing Support Services Back to the Office
A trend analysis of the benefits and challenges of bringing back administrative, word processing and billing services to law offices.
Bit Parts
Summary Judgment Denied Defendant in Declaratory Action by Producer of To Kill a Mockingbird Broadway Play Seeking Amateur Theatrical Rights
How AI Has Affected PR
When we consider how the use of AI affects legal PR and communications, we have to look at it as an industrywide global phenomenon. A recent online conference provided an overview of the latest AI trends in public relations, and specifically, the impact of AI on communications. Here are some of the key points and takeaways from several of the speakers, who provided current best practices, tips, concerns and case studies.