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Sears Holdings Corporation (SHLDQ) announced today that it intends to obtain approval from the court for a "hunting horse" asset purchase agreement with Service.com acquire the Sears Home Improvement Company ("SHIP") in a sales process under Section 363 of the US Bankruptcy Code. SHIP, based in Longwood, Florida, is a unit of the Sears Home Services division.
"The sale of SHIP is an important step for Sears Holdings as we continue our efforts to achieve global restructuring," said Robert A. Riecker, Chief Financial Officer and member of the Executive Director's Office. "We look forward to completing this process quickly to maximize the value of SHIP and ensure a smooth transition for all our stakeholders."
"Service.com is thrilled with the opportunity to partner with SHIP, "said Sandy Kronenberg, Executive Director of Service.com. "It would not have been possible without the support of MadDog Ventures by Peter Karmanos."
The transaction was approved by the Company's Restructuring Committee, composed entirely of independent directors. Under the convention, which is subject to higher or better offers, Service.com account buy SHIP for about 60 million dollars in cash. Holdings intends to put in place tendering procedures allowing other qualified bidders to submit competing bids as part of a court supervised sales process. Interested bidders are invited to contact Lazard Frères & Co. LLC. The Company has asked the Court to review the proposed bidding process on November 15 at 10:00 am ET.
The auction process and the final agreement will be subject to the Court's approval. In addition, completion of the transaction remains subject to closing conditions and customary regulatory approvals. Holdings expects the sale to be completed in early January 2019.
As previously announced, on October 15, 2018, Holdings and certain of its subsidiaries filed voluntary applications under Chapter 11 of the Bankruptcy Code to the US Bankruptcy Court for the Southern District of New York.
advisors
Weil, Gotshal & Manges LLP acts as legal counsel, M-III Partners as restructuring advisor and Lazard Frères & Co. LLC as investment banker for Holdings.
Sidley Austin LLP acts as legal counsel and FINNEA Group LLC acts as financial advisor to Service.com.
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