Sears, the Department Store Company has won a reprieve Friday after Eddie Lampert, the Chairman of the company had submitted the bid of $4.4 billion to buy the retailer to keep it going in its previous pace.
The hedge fund owned by Lampert, ESL Investments has offered a temporary proposal for the parent of Sears and Kmart, which is about to be submitted.
Lampert had submitted the proposal through an affiliate of ESL, Transform Holdeo for the 425 stores of Sears. In order to fund the bid, the financial commitment of $1.3 billion was made from the investment banks.
The bid has the potential to add employment opportunity to none less than 50,000 associates, which depends on the futuristic actions between the time of closing and the present time. Also, it will reinstall the severance protection for the employees who are eligible for the position.
It is expected the bid may divert the liquidation while the advisors of Sears have until 4th January to close on the decision whether ESL qualifies the attributes for the top-notch bidding. This is the only way ESL could participate in the auction against the liquidation bids to be held on 14th January. The value of the bid presented by Lampert against the offers to liquidate the company will also be considered.
The comprehensive structure of the bid presented by Lampert was not determined instantly. However, it will be published in the crowd soon. If the bid is found to be similar with the proposal worth $4.6 billion, it may have the possibility to encounter the pushback from the unsecured creditors of the company. Lampert will have to make the decisions public as a part of the initial bid and part stem of $1.8 billion in debt, which will be considered as a credit bid and will be forgiven.