Cyrus Capital Companions and a hedge fund run by Sears Holdings Corp. Chairman Eddie Lampert are preparing a attainable joint takeover bid that may keep the bankrupt chain alive, based mostly on of us with info of the matter.
The attainable suitors might present to swap debt that they keep for possession of the retailers in a so-called credit score rating bid, talked about the parents, who requested to not be acknowledged because of the strategy shouldn’t be public.
Representatives for Lampert’s ESL Investments Inc. hedge fund and Cyrus declined to comment. A advisor for Sears, based totally in Hoffman Estates, moreover declined to comment. A takeover would require approval from the chapter courtroom, and competing bids from completely different suitors are nonetheless potential, along with one that may liquidate the company.
Lampert has talked about he was considering making a proposal to keep up Sears open for enterprise. Nevertheless the retailer has struggled to accumulate financing merely to stay open all through its chapter proceedings, and talked about this week it may possibly need an additional $239 million by February.
Merely days earlier, Cyrus and Sears found themselves at odds over the company’s plan to spice up cash by selling notes to debt retailers — a switch that may devalue a side guess Cyrus had made on the bankrupt retailer’s survival. Cyrus lastly wound up purchasing for these notes itself, and in a last-minute courthouse hallway deal on Tuesday, it stepped in to supply key chapter financing the retailer should keep working.