November 28, 2018 / 7:45 PM / 11 days ago

Lampert's hedge fund and Cyrus Capital to team up for possible Sears bid: Bloomberg

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

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