|
If the new $100m is a secured by hard assets, and senior to other debts of Sears, then perhaps the lifeline investor is assuming a default and will assume ownership of assets. Perhaps they believe the value of hard assets pledged as security/collateral for the loan is >$100 so this is a way to “buy” those assets cheaply.
For sure the Sears brand is not worth much these days, but I’d expect there are still a lot of hard assets and real property within the company that have value.
|