The template for the Sears’ endgame has been around for better than 5 years. It is common knowledge that in 2007, Eli transferred ownership of the only real assets in Sears (brand names Kenmore, Craftsman & Die Hard) to KCD IP. KCD then issued $1.8 billion worth of bonds backed by IP and sold them to Sears’ Bermuda insurance subsidiary. So now what? Bermuda sells the bonds to outsiders. Eli winds up holding $1.8 billion in cash, and Sears’ investors would be holding the bonds (or the bag).
Wiggy – Not a bad idea, but right now the real GM certs are too rich for my blood. They gotta be worth at least a nickel each, so I’ll wait for them to fall off to their real value level. Gotta admit though, they would look good papering my laundry room and would be very appropriate in that context.
There is an upside, you know. If there have been any actual certs issued, I’m going to try to buy a bunch of them. At $.03 per cert, they’ll make some great wallpaper for my bathroom. That way, when I am seated in deep contemplation, I will be able to recall all the luminaries and sages that used to hang out here. Ah, for the good ol’ days.