With bankrupt retailer Sears still struggling to find a bankruptcy financing package to allow it to continue operating (although Reuters reported that a loan as much as $600 million may be available soon), an even greater headache has emerged for the company’s owner: Sears creditors have asked bankruptcy court to probe transactions involving Sears’ biggest shareholder, Eddie Lampert, that they say may have resulted in Lampert
stealingbilking them of $2.6 billion.
According to Bloomberg, based on a limited investigation since Sears filed for bankruptcy less than a month ago, the official committee of the company’s creditors said it believes there are claims over “related-party transactions” involving Lampert, his hedge fund ESL Investments and Fairholme Capital Management. In court papers, the committee also said some claims are related to Seritage Growth Properties.
“The circumstances surrounding the various transactions raise the possibility that ESL and other insiders may have exercised undue influence to siphon value away from the company on favorable terms,” the creditors alleged in the documents….
More importantly, he’s stealing 10’s of thousands of desperately needed jobs. And STILL congress refuses to act on vulture capitalism, what, 30 years into the phenomenon? This is not an accident. Money is changing hands.