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Law Alert: Sears Files for Bankruptcy

by Craig J. Helmreich, Gregory A. Ostendorf, Prasad Sharma

October 15, 2108

 

Sears Files for Bankruptcy – What Does it Mean for Your Company?

Sears Holding Corporation and almost 50 related companies, including both Kmart and Innovel Solutions (collectively “Sears”), have filed Chapter 11 bankruptcy cases in the Southern District of New York Bankruptcy court. Sears has positioned the filings as a potential reorganization, but specific portions of the petition and subsequently filed first-day motions look like at least a partial liquidation. That said, the first-day motions include requests for court approval to pay employees, pay for insurance, and of specific concern to transportation companies – permission to pay certain transportation and warehouse providers the sums due at the time of filing as well as the sums incurred by Sears after the filing with increased payment priority. A hearing on these first- day motions is set for this afternoon. The Scopelitis Firm is monitoring the bankruptcy and advising companies regarding exposure, risk mitigation, and related issues. If your company has provided transportation or warehouse services to Sears, or any of the related companies and you have questions or concerns relative to the bankruptcy process, please contact Craig Helmreich, Greg Ostendorf, or Prasad Sharma.

 

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Scopelitis Transportation Law Alerts are intended as a report to our clients and friends on legal developments affecting the transportation industry. The published material does not constitute an exhaustive legal study and should not be regarded or relied upon as individual legal advice or opinion.

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