By Mike Spector
(Reuters) – Sears Holdings Corp (PK:SHLDQ) is nearing a deal with new lenders to increase a bankruptcy financing package to as much as $600 million, from $300 million, without Chairman Eddie Lampert’s hedge fund contributing, people familiar with the matter said on Monday.
The deal, which may come as soon as this week, could provide enough money for the beleaguered U.S. retailer to keep its shelves stocked during the holiday shopping season and retain sufficient support from creditors and vendors to emerge from bankruptcy proceedings.
The stakes are high, given that Sears faces a Dec. 15 deadline to name a so-called stalking-horse bidder that would make an initial offer, which others could later top, for hundreds of stores that would survive under a new owner.
Sears is in the final stages of negotiations with multiple investment firms to receive up to $450 million in bankruptcy financing in exchange for key collateral currently held by banks lending to the retailer, the sources said. Cyrus Capital Partners LP is one of the investment firms in discussion with Sears, one of the sources said.
