Sears (Hoffman Estates, Ill.) may still have a chance of staying in business following a bid from Chair Eddie Lampert’s hedge fund, ESL Investments (Greenwich, Conn.), that was initially rejected.
ESL Investments originally put forward a $4.4 billion bid to save the company, which declared bankruptcy in Oct. 2018. Sears, however, planned to reject the bid on grounds that it did not sufficiently cover the fees and vendor payments it owes, making it “administratively insolvent,” according to CNBC.
ESL protested the decision and a bankruptcy judge has allowed Lampert to participate in a previously scheduled auction when ESL’s offer will be compared to those of liquidators. The hedge fund will also have to pay a $120 million deposit by 4 p.m. today, Jan. 9, 2019.