FILE PHOTO: A store closing sale sign is posted next to a Sears logo in New Hyde Park, New York, U.S., October 10, 2018. REUTERS/Shannon Stapleton/File Photo
(Reuters) – Sears Holdings Corp (SHLDQ.PK) Chairman Eddie Lampert’s hedge fund and Cyrus Capital Partners LP are preparing a potential takeover bid to keep the bankrupt retailer running, Bloomberg reported on Wednesday.
The prospective suitors may offer to swap debt they hold for ownership of the stores in a so-called credit bid, the report said, citing people familiar with the matter.
A Sears spokesperson and Lampert’s ESL Investments declined to comment on the matter. Cyrus did not comment on the subject.
On Tuesday, Sears won a court approval for $350 million in critical bankruptcy financing that will keep the retailer open through the holidays.
Reuters reported that the retailer reached a deal with Cyrus for the financing just before the hearing began on the retailer’s so-called debtor-in-possession financing arrangements.
Reporting by Nivedita Balu in Bengaluru; Editing by Shailesh Kuber