Sears Claims Held by ESL and Other 2L Lenders Worth Zero: Judge

The federal judge overseeing the bankruptcy of Sears Holdings Corp. ruled that the value of second-lien holders’ claims is zero, according to new court filing.

• Because there wasn’t a decrease in the value of the second-lien holders’ collateral between the petition date and the effective date, the second-lien holders don’t have any liens on or recourse to the wind down account, Judge Robert Drain wrote Aug. 5
• ESL Investments Inc. and Cyrus Capital Partners LP, which are lenders to Sears and now to the retailer’s bankrupt estate, said in June court filing that the estate was wrongly sapping the value ...