http://www.marketwatch.com/story/sears-is-again-borrowing-from-owner-and-ceo-eddie-lampert-2017-10-05
11 replies (most recent on top)
Eddie is a loan shark. Who pays 11% interest when most banks are between 2 to 4%?
@1jqk No matter what 11 percent in a high value loan is a ton of money. You be lucky if you can get 2 to 3 percent from an actual bank. You can get more, but than its a gamble, no matter what Eddie isnt gambling anything he will end with the properties. I think Sears is just cutting to the end and they can't afford such big interest payment if its high.
People keep saying its over ,but damit i still have to work all weekend, just end our sufferings, just put us into liquidation so we can end this misery
11% interest?!?!
Not bad, considering how low the interest on a loan from a real bank or financial entity would be. Not that Sears is in any shape to seek outside financing, of course. It's a nice payback on Eddie's money, and I'll assume that interest will be the lion's share of any payments SHLD makes on the loan.
Fast Eddie's shenanigans can't be legal. At the very least, he's violating his fiduciary duty to the company.
All I know is I don't want to be around when this all goes bad for us sears workers GET OUT NOW. I am ASAP.
Funny thing the stock market really hasn't even been affected by this news, the stock started the day out at 7.18 and now only 7.28 share, with this news you would have thought the stock would have raised some, only up 0.09 from the am post. This just means Eddie will be getting more of the Sears property once the BK starts to pay off these loans, very smart on his part. Don't know how he's getting away with it, all he needs to do now is declare bankruptcy of Sears, then get all this property for his own business. As a sears employee all I can do is SMH, as for a business owner bully to you Eddie. You crook!
Exactly! Will be interesting to see if he excercises the option on the $500 million loan facility that comes due in January 2018, You may remember this debt as being part of the renegotiated loans that were originally due in July of 2017, along with the pension obligations. The plot thickens.
Matures April 2018. Hmm....
These transactions are anything but "arms length." I wonder if the BOD obtained a fairness opinion as to the transactions (past, present & future)? I suspect Mr Lampert will gain an unfair market advantage as to acquiring the remaining real estate assets in the event of the ultimate bankruptcy. My guess is that he becomes first-in-line before all the secured and unsecured creditors? I hope some class action attorney is watching the events? Even with a BK filing, i am sure the BOD has "tail coverage" to cover future liability after the fact.
Pretty amazing .....soon Eddie will own all the debt. A long process to acquire real estate, but...a win for him and the shaft for us employees. Use those vacation days kids, while you can.