Sears Files Plan of Reorganization

Highlights:

*The Plan contemplates a Wind Down of the remaining assets of the Debtors’ estates—primarily litigation claims—and a distribution to creditors in accordance with the absolute priority rule and certain settlements, as described herein. Specifically, the Plan provides for the approval of the settlement with the Pension Benefit Guaranty Corporation (the “PBGC” and, such settlement, the “PBGC Settlement”).

*On the Effective Date of the Plan, all of the Debtors’ assets will be transferred to the Liquidating Trust (defined below) and the Debtor legal entities will be dissolved. A Liquidating Trustee and board of directors will be appointed to carry out the terms of the Plan. The Plan constitutes a single chapter 11 plan for all of the Debtors and the classifications and treatment of Claims and Interests therein apply to each of the Debtors separately. The Plan does not propose to substantially consolidate the Debtors.

*On the Effective Date, all Existing SHC Equity Interests shall be cancelled. Each such holder thereof shall: neither receive nor retain any property of the Estate or direct interest in property of the Estate of SHC on account of such Existing SHC Equity Interest.

*Disclosure Statement Objection Deadline: May 9, 2019 at 4:00 p.m.
Voting Record Date: May 9, 2019
Disclosure Statement Hearing: May 16, 2019 at 10:00 a.m.
Plan Confirmation Hearing: July 23, 2019 at 10:00 a.m.