HOFFMAN ESTATES, Ill. — Sears Holdings Corporation (“Holdings,” “we,” “our,” or the “Company”) (NASDAQ: SHLD) today announced that the U.S. Bankruptcy Court for the Southern District of New York (the “Court”) granted interim approval of all the Company’s first day motions related to its voluntary Chapter 11 restructuring. Collectively, the approvals by the Court immediately improve the Company’s liquidity position and allow Holdings to continue its business operations throughout the financial restructuring process.
The Court entered an order granting the Company authorization to access its $300 million in senior priming debtor-in-possession (“DIP”) financing from its senior secured asset-based revolving lenders. The Company also received authorization to continue paying employee wages and benefits, and to honor member programs including warranties and promotions.
“The Court’s approval of our First Day motions is an important step forward in our financial restructuring process that will allow the Company to continue operating in the normal course and providing our customers and members with trusted service,” said Robert A. Riecker, Chief Financial Officer, and member of the Office of the Chief Executive. “Our stores, online and mobile platforms, and related businesses are open and we continue to offer our customers and members the brands and products they want. We look forward to continuing to engage in productive discussions with our creditors and other stakeholders to pursue a plan of reorganization as expeditiously as possible.”
As previously announced, on October 15, 2018, Holdings and certain of its subsidiaries filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York.
Additional information is available on the Company’s restructuring website at restructuring.searsholdings.com. For Court filings and other documents related to the court-supervised process, please visit http://restructuring.primeclerk.com/sears, call (844) 384-4460 (for toll-free domestic calls) and +1 (929) 955-2419 (for tolled international calls), or email searsinfo@primeclerk.com.
Advisors
Weil, Gotshal & Manges LLP is serving as legal counsel, M-III Partners is serving as restructuring advisor and Lazard Frères & Co. LLC is serving as investment banker to Holdings.
About Sears Holdings Corporation
Sears Holdings Corporation (NASDAQ: SHLD) is a leading integrated retailer focused on seamlessly connecting the digital and physical shopping experiences to serve our members – wherever, whenever and however they want to shop. Sears Holdings is home to Shop Your Way®, a social shopping platform offering members rewards for shopping at Sears and Kmart as well as with other retail partners across categories important to them. The Company operates through its subsidiaries, including Sears, Roebuck and Co. and Kmart Corporation, with full-line and specialty retail stores across the United States. For more information, visit www.searsholdings.com.
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