Eddie Lampert's fund relied on Cyrus in Sears
Sears Chairman Eddie Lampert collaborates with Cyrus Capital Partners in his bid on Sears Holdings, Bloomberg reported Wednesday.
Lampert has stated in the trial that his security fund, ESL Investments, plans to buy around 500 of Sears stores, so it's out of bankruptcy. been unclear how ESL would finance such a bid.
Cyrus Capital has emerged as a key party in Sears Bankruptcy. The Tuesday afternoon swooped in to pay Sears junior debt financing, a surprising development in bankruptcy law that shocked and with some of Sears' lenders. Sears had previously said that he was working with Great American Capital Partners for the loan.
Even with Cyrus support, ESL meets challenges to keep Sears alive. Some of Sears & # 39; unsecured lenders have already pressured to liquidate. Should ESL use any of Sears's debt to finance a bid ̵[ads1]1; through a so-called credit bid – it can also be pushback from lenders. Some see credit bids as giving investors who buys an ub eager company debt at cheap prices an unfair advantage.
A spokesman for ESL refused to comment on CNBC, as a spokesman for Sears Holdings. Cyrus Capital did not have a comment.
