Wells Fargo Provides Debtor-in-Possession Financing to Sears

Choate represented Wells Fargo as Co-Collateral Agent and joint underwriter in connection with a debtor-in-possession credit facility to Sears Holdings, Inc. After Sears’ Chapter 11 filing in October 2018, Choate worked alongside, and at times against, the various stakeholders in the Debtors’ efforts to monetize assets, reduce secured debt and generate liquidity to support the Chapter 11 proceeding. Ultimately, substantially all the Debtors' assets were sold to an affiliate of ESL as a going concern.

On February 7th the Court approved the 363 sale and on February 11, the sale closed with Wells Fargo being paid in full, along with the other DIP lenders.