Eddie Lampert, Sears Holdings Corp’s largest shareholder and lender, is hoping to use the proceedings to help Sears tide over liquidation ahead of the crucial holiday shopping season.
According to sources familiar with the matter at hand, Eddie Lampert, Sears Holdings Corp’s CEO has come forward to contribute towards a financing package in the range of $500 million and $600 million; Sears stated the deal was close to be secured and if it goes ahead with it, the funds will be used to fund operations during bankruptcy proceedings.
Incidentally, Lampert is the company’s largest shareholder and biggest lender. He is hoping the deal, in combination with a program of divestitures, will enable Sears to have a fighting chance of escaping liquidation ahead of the key holiday shopping season, said sources.
Big banks are also likely to chip-in for financing, said sources.
Sources have however cautioned that the deal is yet to be signed and that there is always a chance that negotiations could collapse at the last minute; they have preferred the cover of anonymity since the matter is confidential.
Sears’ spokesman did not immediately respond to a request for comment.