Sears, Eddie Lampert, Pbgc discussed on Opening Arguments


PBGC. We talked with this has one point seven billion dollars in claims against Sears. Right. That is for liabilities that PBGC will, incur, if Sears does not pay its pension fund, but they agreed to the sale subject to the condition that I'm on other things that PBGC assume those severance reimbursement obligations and pay off the people that were laid off during the bankruptcy, and they also agreed to an unsecured claim against the Sears estate against the, the money that comes in as a result of selling off the Sears assets that is part of what is called a plan of reorganization. It's now on the second amended plan of. Reorganization and that's where we are right now. And the way in which that works in a bankruptcy is when you're in chapter eleven you say, hey, look, we're gonna come up with a plan to come out of the bankruptcy, and that plan part of that plan in order for the company to get a fresh the new company to get a fresh start. We need to make the creditors. Not whole but to get rid of all the creditors. Right. So we're going to satisfy all of the obligations against the creditors clear off the books, and that's what the plan of reorganization is meant to do that is the fight that is that is going on right now. And two days ago transform hold co LLC. Filed a lawsuit a declaratory judgment seeking among other things. A statement this is this preemptive that it does not have to pay the settlement, reimbursement obligations because of failure of Sears to turnover certain levels of assets. And then their argument is that, that reduces it dollar for dollar. In other words, Eddie Lampert, controlled ESL controlled entity transform hold co LLC is now saying it reserves the right not to pay the pension obligations of Sears employee's who were laid off as a result of the bankruptcy. Now put all three of these pieces together. What's going to happen? That transform hold co. Lawsuit names, PBGC, the allegations surrounding Sears directly implicate, the secretary of the treasury, Steven Mnuchin, the person now in charge of how strongly to litigate the claims against Steven Mnuchin. Any Lampert is Gordon heart agendas. My predictions are as follows. I think transform hold co LLC is not going to pay it's obligations. I think PG see is not going to get paid. Anything? They're going to get pennies on the dollar. At best out. Ultimately out of the Sears reorganization on Inc. Lampert and Mnuchin are gonna walk away with billions of dollars in assets. By the way, he BG see is going to get..

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