1) Commons are safe.
a. They will be exchanged for NEWCO shares
b. Should be on a 1-1 ratio, but who knows
2) 375+/- stores will be liquidated to pay down debt.
3) 425 Surviving stores will make up the “New” Sears
4) June POR to be released
5) Debtors will be paid as assets are sold off and revenue comes in
This is jmho and how I see things evolving. Sure there can be and will be changes going along the way, but again, the hard part is done…Lampert and ESL survived the biggest holocaust they ever faced.
6) A Hedge Fund, Fairholme, owned by Bruce Berkowitz holds mount beneficially owned:
Fairholme Capital Management, L.L.C.: 3,900,408 (3.6%)
Bruce R. Berkowitz: 4,578,440 (4.2%)
Fairholme Funds, Inc.: 2,774,489(2.5%)
Other institutional shareholders:
There are about 30 million public float.
Here is a comparison study between WMI and SHC Bankruptcies:
1. Both Companies have hired Weil, Gotshal & Manges - experts in protecting the NOLs/ Tax Attributes and in Reorganizations.
2. Both Companies sold substantially all of their Assets in Bankruptcy. WMI sold its Bank WAMU to JPM and SHC just sold all of its Operating Stores to ESL.
3. Both Companies have/had significant NOLs. WMI had $ 7.5 B in NOLs and as of Feb 3, 2018 SHC had $ 5 B in NOLs with an additional $ 1.9 B in Losses in the 9 months following Feb 3, 2018. That would be $ 6.9 B in NOLs as of Nov 3, 2018.
4. In the WMI Bankruptcy over 90 % of the reorganized Common Stock were issued to the Preferred and Common Shareholders. After WMI was emerged from Bankruptcy as WMIH with the limited remaining Assets, the WMIH Stock traded in the .50 range and then eventually increased to about $4.00
5. $WMIH was eventually merged with $COOP to utilize $ 6 B in NOLs which is trading at $14.70
6. It is my opinion that it was the $ 7.5 B in NOLs that saved the WMI Preferred and Commons. And I think that the same event could happen with the SHLDQ Commons.