The head of a significant hedge fund is watching the Kenmore and DieHard marks out of the Sears bankruptcy – but it is not clear whether he can indulge in company honk Eddie Lampert, the post learned.
This hedge fund has signed a confidentiality agreement with Sears to study the brands, according to a fund source requesting anonymity.
The news of interest comes as Sears considers Monday's bid for its assets, including a last $ 5 billion plus offer from Lampert, which includes an additional $ 600 million for additional assets, including 57 properties.
Liquidators are also expected to bid on Sears, but they have no interest in the Kenmore and DieHard brands, sources say.
The hedge fund's Kenmore-DieHard bid will be conditional on the rejection of the severely revised bid, the source said.
That scenario may introduce other problems, though.
Creditors will claim Lampert Hedge Funds, ESL Investments, controlled Sears and lent money to Sears units to gain an unfair advantage over them in what is called "fair subordination."
"If Sears 'creditors do not want Eddie's bid, they will be in court forever The games Eddie says, the hedge fund source.
" Sears' creditors want money but frankly, these marks are tied up with Eddie's debt There are about $ 900 million of debt associated with DieHard and Kenmore, according to government applications.
"ESL could oppose the sale," real estate expert Adam Stein-Sapir told the post.
"Eddie has debts to these entities, and he has claims," a source near Sears said.
Lamped last year offered $ 400 million for Kenmore, but could not get his deal completed, including because Government Pension Insurance Corp. wanted a share of the proceeds as it helped cover 1[ads1]00,000 Sears retirement benefits.
Sears owns the trademarks through a unit – Sears Reinsurance Co. – who are not part of the bankruptcy and who have outstanding loans to ESL, according to public applications.
Sears refused to comment.