Sears CEO Urges Immediate Action to Stave Off Bankruptcy
- ESL proposal would cut debt by about 78% and extend maturities
- Hedge fund warns of alternatives that could wipe out holders
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Sears Holdings Corp. is reviewing a proposal by Chief Executive Officer Eddie Lampert to keep the retailer alive by restructuring its debts and selling real estate.
Plans outlined in regulatory filings Monday include cutting debt by about 78 percent to $1.2 billion and extending near-term maturities, with annual interest savings of 80 percent. The proposal came from ESL Investments Inc., the hedge fund controlled by Lampert, who ranks as the largest Sears shareholder.