Sears second-lien creditor administrative claims estimation appealed

By Caroline Salls

Pittsburgh, Aug. 15 – An order determining the amount of Sears Holdings Corp. second-lien debtholders’ administrative claims drew three appeals, according to notices filed with the U.S. Bankruptcy Court for the Southern District of New York.

One appeal was filed Wednesday by creditor ESL Investments, Inc. and affiliated entities including JPP, LLC and JPP II, LLC.

The second appeal was filed Wednesday by indenture trustee and collateral agent Wilmington Trust, NA.

The third appeal was filed Wednesday by Cyrus Capital Partners, LP.

The claims order was entered on Aug. 5 and estimated the amount of the second-lien creditors’ administrative claims at zero.

Judge Robert D. Drain said in the order that, because there was no diminution in the value of the second-lien creditors’ collateral from the Sears debtors’ bankruptcy filing date, the second-lien collateral agent and the second-lien claimholders do not have any liens or recourse in connection with the company’s winddown account.

Sears is a retailer based in Hoffman Estates, Ill. The company filed bankruptcy on Oct. 15, 2018 under Chapter 11 case number 18-23538.

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