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Sears Holdings Sue Lampert, ESL; Creditors Seek Recompense

April 19, 2019, 09:15 AM
Filed Under: Bankruptcy

Sears Holdings is suing its former CEO and would-be savior Eddie Lampert for allegedly offloading company real estate to finance his own purchase of Sears' assets at the expense of creditors.

According to multiple media reports, the complaint named Lampert, his hedge fund ESL Investments, and other senior executives of pre-bankruptcy Sears as defendants. It also names for Treasury Secretary Steven Mnuchin, who prior to joining the Trump Administration sat on Sears' board. 

"As Sears was sliding into bankruptcy, Eddie Lampert ... in concert with and assisted by other defendants, transferred billions of dollars of the company's assets ... for grossly inadequate consideration or no consideration at all," the federal lawsuit states. "This complaint is brought to make Sears whole for these thefts of its assets."

Lampert was the winning bidder for Sears Holdings assets despite creditors's attempts to block his purchase of the company's remains in favor of liquidation.

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