Sears Escapes $88M In Deductions From Sale Deal

Law360 (September 12, 2019, 9:52 PM EDT) -- A New York bankruptcy judge has shot down attempts by Sears buyer ESL Holdings to collect more than $88 million from the bankrupt company for alleged violations of their $5.2 billion sale deal.

In an all-day hearing Thursday, U.S. Bankruptcy Judge Robert Drain found Sears Holding Co. could keep $22.5 million in last-minute cash receipts and did not owe ESL $66 million for vendor payments it postponed in the last days before the sale.

Sears declared bankruptcy in October 2018 and was purchased in February for $5.2 billion by ESL-owned holding company Transform Holdco. ESL is owned by former Sears CEO Edward...

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