Business

Sears obtain court approval for an extra $350 million loan

Sears obtain court approval for an extra $350 million loan
Sears obtain court approval for an extra $350 million loan

Sears Holdings Corp won court approval Tuesday for $350 million in crucial bankruptcy funding which will keep the 125-year-old retailer working throughout the holiday while it tries to reorganize.

Sears attained the agreement with all Cyrus Capital Partners LP for its funding only before a hearing started in U.S. Bankruptcy Court for the Southern District of New York about the merchant’s so-called debtor-in-possession financing agreements, according to an Individual familiar with the issue.

Cyrus’ loan substituted a similar agreement Sears attained earlier this month with Good American Capital Partners, a financial company affiliated with liquidation professional Great American Group and fiscal services company B. Riley Financial Inc. Cyrus provided better relation of Sears, the individual said.

“The conditions of the trade were less favorable than that which we’d consented,” explained John Ahn, president in Great American Capital Partners.

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A Sears spokesman declined to comment on the price for its $350 million loan, which U.S. Bankruptcy Judge Robert Drain approved in the hearing. The loan increases $300 million that banks supplied Sears as it filed for bankruptcy protection in October, providing the beleaguered merchant a total of $650 million in funding.

“These loans will benefit everyone,” Drain said. A Cyrus spokeswoman had no immediate comment.

A Sears spokesman declined to comment on the price for its $350 million loan, which U.S. Bankruptcy Judge Robert Drain approved in the hearing.

The loan increases to $300 million that banks supplied Sears as it filed for bankruptcy protection in October, providing the beleaguered merchant a total of $650 million in funding.

“These loans will benefit everyone,” Drain said.

Some lenders have stated Sears should think about winding down by allowing liquidators sell its resources at precisely the exact same manner Sports Authority failed two decades back and Toys “R” Us did so season when it closed all its U.S. brick-and-mortar places.

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Sears has said it plans to close around 180 stores while its chairman, Eddie Lampert, a billionaire who runs hedge fund ESL Investments Inc, functions on an expected bid to maintain Sears in company.

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Avi Selk

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Avi worked for many years in factories and service industries — experiences he values. He later graduated from the University of Texas at Austin's journalism program in 2009, then worked for the Dallas Morning News until 2016, when The Washington Post hired him. He reports for the general assignment desk.

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