Sears receives court approval of 'first day' motions to support business ops
Sears Holdings Corporation announced that the U.S. Bankruptcy Court for the Southern District of New York granted interim approval of all the company's first day motions related to its voluntary Chapter 11 restructuring. Collectively, the approvals by the Court immediately improve the company's liquidity position and allow Holdings to continue its business operations throughout the financial restructuring process. The Court entered an order granting the company authorization to access its $300M in senior priming debtor-in-possession financing from its senior secured asset-based revolving lenders. The company also received authorization to continue paying employee wages and benefits, and to honor member programs including warranties and promotions. As previously announced, on October 15, 2018, Holdings and certain of its subsidiaries filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York.