UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): January 21, 2020

 

 

SEARS HOLDINGS CORPORATION

(Exact Name of Registrant as Specified in Its Charter)

 

 

 

Delaware   000-51217, 001-36693   20-1920798
(State or Other Jurisdiction
of Incorporation)
 

(Commission

File Number)

  (IRS Employer
Identification No.)
3333 Beverly Road
Hoffman Estates, Illinois
  60179
(Address of principal executive offices)   (Zip code)

Registrant’s Telephone Number, Including Area Code: (847) 286-2500

(Former Name or Former Address, If Changed Since Last Report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act: None.

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

☐  Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

 

 

 


Item 7.01 Regulation FD Disclosure.

As previously disclosed, on October 15, 2018 (the “Petition Date”), Sears Holdings Corporation (the “Company”) and certain of its subsidiaries (together with the Company, the “Debtors”) filed voluntary petitions (the “Chapter 11 Cases”) in the United States Bankruptcy Court for the Southern District of New York (the “Bankruptcy Court”) seeking relief under chapter 11 of title 11 of the United States Code (the “Bankruptcy Code”), on April 17, 2019, the Debtors filed a proposed Joint Chapter 11 Plan with the Bankruptcy Court, on May 16, 2019, the Debtors filed an amended proposed Joint Chapter 11 Plan with the Bankruptcy Court, and on June 28, 2019, the Debtors filed a Second Amended Joint Chapter 11 Plan with the Bankruptcy Court.

The Chapter 11 Cases are being jointly administered under the caption “In re Sears Holdings Corporation, et al., Case No. 18-23538.” Documents filed on the docket of and other information related to the Chapter 11 Cases are available free of charge online at https://restructuring.primeclerk.com/sears. Documents and other information available on such website are not part of this Current Report on Form 8-K (this “Form 8-K”) and shall not be deemed incorporated by reference in this Form 8-K.

On September 13, 2019, the Debtors filed a Modified Second Amended Joint Chapter 11 Plan with the Bankruptcy Court. On October 1, 2019, the Debtors filed a Revised Modified Second Amended Joint Chapter 11 Plan (the “Plan”) with the Bankruptcy Court. On October 15, 2019, the Bankruptcy Court entered an order, Docket No. 5370, confirming the Plan.

On January 17, 2020, the Debtors filed with the Bankruptcy Court their monthly operating report for the period beginning September 1, 2019 and ending October 5, 2019 (the “September Monthly Operating Report”), and their monthly operating report for the period beginning October 6, 2019 and ending November 2, 2019 (the “October Monthly Operating Report”, and together with the September Monthly Operating Report, each, a “Monthly Operating Report” and together, the “Monthly Operating Reports”). The September Monthly Operating Report and the October Monthly Operating Report are attached hereto, respectively, as Exhibits 99.1 and 99.2, and are incorporated herein by reference. The information set forth in Item 7.01 of this Form 8-K will not be deemed an admission as to the materiality of any information required to be disclosed solely by Regulation FD. The Monthly Operating Reports and other filings with the Bankruptcy Court related to the Chapter 11 Cases, are available electronically at http://restructuring.primeclerk.com/sears. Documents and other information available on such website are not part of this Form 8-K and shall not be deemed incorporated by reference in this Form 8-K.

The information contained in this Item 7.01 is being “furnished” and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and shall not be deemed to be incorporated by reference into any of the Company’s filings under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, whether made before or after the date hereof and regardless of any general incorporation language in such filings, except to the extent expressly set forth by specific reference in such a filing.

Cautionary Statement Regarding the Monthly Operating Reports

The Company cautions investors and potential investors not to place undue reliance upon the information contained in the Monthly Operating Reports, which were not prepared for the purpose of providing the basis for an investment decision relating to any of the securities of the Company. The Monthly Operating Reports are limited in scope, cover a limited time period and have been prepared solely for the purpose of complying with the monthly reporting requirements of the Bankruptcy Court. The Monthly Operating Reports were not audited or reviewed by independent accountants, were not prepared in accordance with generally accepted accounting principles in the United States, are in a format prescribed by applicable bankruptcy laws or rules, and are subject to future adjustment and reconciliation. There can be no assurance that, from the perspective of an investor or potential investor in the Company’s securities, the Monthly Operating Reports are complete. Results set forth in the Monthly Operating Reports should not be viewed as indicative of future results.

As previously reported in a Form 12b-25 filed on April 18, 2019, the Company will not file an Annual Report on Form 10-K for the fiscal year ended February 2, 2019 or any quarterly reports on Form 10-Q for subsequent periods ended prior to the confirmation of the Plan. Instead, through the effective date of the Plan (the “Effective Date”), the Company will file Current Reports on Form 8-K containing (i) disclosure of all material events in the Chapter 11 Cases and any other information required by the instructions to Form 8-K and (ii) as exhibits, the operating reports and any other documents that include unaudited financial information that are filed by the Company with the Bankruptcy Court.

Forward-Looking Statements

Various statements in this Form 8-K or documents referred to herein, including those that express a belief, expectation or intention, as well as those that are not statements of historical fact, and/or the Monthly Operating Reports are “forward-looking statements” within the meaning of Section 27A of the Securities Act, Section 21E of the Exchange Act and/or the Private Securities Litigation Reform Act of 1995, as applicable. All statements, other than statements of historical facts, included in this filing that address activities, events or developments that the Company expects, believes, targets or anticipates will or may occur in the future are forward-looking statements. The Company’s actual results may differ materially from those anticipated in these forward-looking statements as a result of certain risks and other factors, which include the following: risks and uncertainties relating to the Chapter 11 Cases, including but not limited to risks relating to the Debtors’ ability to satisfy (or obtain waivers of) the conditions precedent to the Effective Date and the


Debtors’ ability to pay the Administrative Expense Claims (as they may be reduced under section 1129(a)(9) of the Bankruptcy Code) and therefore whether and/or when the Effective Date will occur; with respect to distributions under the Plan, (i) the Debtors’ ability to make such distributions (including the timing and amount of proceeds to be realized through (a) the monetization of certain non-litigation assets, (b) the assumption of certain 503(b)(9) claims by Transform Holdco LLC (“Transform”), an affiliate of ESL Investments, Inc. (“ESL”), and (c) certain litigation assets, including preference actions, prepetition related party transaction claims against ESL and D&O insurance, and (ii) whether the actual amount of Allowed Claims varies from the Debtors’ feasibility analysis and, if so, whether the variation is material; the Company’s ability to obtain Bankruptcy Court approval with respect to motions in the Chapter 11 Cases, the effects of the Chapter 11 Cases on the Company and on the interests of various constituents, Bankruptcy Court rulings in the Chapter 11 Cases and the outcome of the Chapter 11 Cases in general, risks associated with third-party motions in the Chapter 11 Cases; risks related to the trading of the Company’s common stock and warrants on the OTC Pink Market, particularly because the Plan states that the common stock and warrants will be cancelled on the Effective Date; risks relating to the Company’s ability to implement the Plan; as well as other risk factors set forth in the Plan. The Company therefore cautions readers against relying on these forward-looking statements. All forward-looking statements attributable to the Company or persons acting on the Company’s behalf are expressly qualified in their entirety by the foregoing cautionary statements. All such statements speak only as of the date made, and, except as required by law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

 

99.1    Monthly Operating Report for the period ended October 5, 2019, filed with the United States Bankruptcy Court for the Southern District of New York
99.2    Monthly Operating Report for the period ended November 2, 2019, filed with the United States Bankruptcy Court for the Southern District of New York



SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

SEARS HOLDINGS CORPORATION
By:   /s/ Mohsin Meghji
         Mohsin Meghji
  Chief Restructuring Officer

Dated: January 21, 2019

Exhibit 99.1

 

In re: Sears Holdings Corporation, et al.

Debtors

  

Case No. 18-23538 (RDD)

Reporting Period: September 1 – October 5, 2019

Federal Tax I.D. # 20-1920798

GLOBAL NOTES AND STATEMENTS OF LIMITATIONS

AND DISCLAIMERS REGARDING THE DEBTORS’ MONTHLY OPERATING REPORTS

On October 15, 2018 (the “Petition Date”), Sears Holdings Corporation and 49 of its debtor affiliates, as debtors and debtors in possession in the above-captioned chapter 11 cases (collectively, the “Debtors,” and together with the Debtors’ non-debtor affiliates, the “Company”)1 filed voluntary petitions for relief under chapter 11 of title 11 of the United States Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the Southern District of New York (the “Bankruptcy Court”). In addition, Debtors SHC Licensed Business LLC, SHC Promotions LLC and SRe Holding Corporation filed their voluntary petitions for relief on October 18, 2018, October 22, 2018 and January 7, 2019, respectively. The Debtors’ chapter 11 cases are being jointly administered for procedural purposes only pursuant to Rule 1015(b) of the Federal Rules of Bankruptcy Procedure (the “Bankruptcy Rules”) under the caption Sears Holdings Corporation., et al., Case No. 18-23538 (RDD) (S.D.N.Y.), pursuant to an order entered by the Bankruptcy Court on October 15, 2018 [ECF No. 118]. On October 24, 2018, the United States Trustee for Region 2 (the “U.S. Trustee”) appointed an official committee of unsecured creditors pursuant to section 1102(a) of the Bankruptcy Code (the “Creditors’ Committee”) [ECF No. 276]. The Debtors continue to operate their business and manage their properties as debtors in possession pursuant to sections 1107(a) and 1108 of the Bankruptcy Code. On February 8, 2019, the Bankruptcy Court entered the Order (I) Approving the Asset Purchase Agreement Among Sellers and Buyer, (II) Authorizing the Sale of Certain of the Debtors’ Assets Free and Clear of Liens, Claims, Interests and Encumbrances, (III) Authorizing the Assumption and Assignment of Certain Executory Contracts, and Leases in Connection Therewith and (IV) Granting Related Relief [ECF No. 2507] (the “Sale Order”). The Sale Transaction (as defined in the Sale Order) with Transform Holdco LLC (the “Buyer”) closed on February 11, 2019 (the “Closing”). On October 15, 2019, the Bankruptcy Court entered the Order (I) Confirming Modified Second Amended Joint Chapter 11 Plans of Sears Holdings Corporation and Its Affiliated Debtors and (II) Granting Related Relief [ECF No. 5370] (the “Confirmation Order”).

 

1 

The Debtors in these chapter 11 cases, along with the last four digits of each Debtor’s federal tax identification number, are as follows: Sears Holdings Corporation (0798); Kmart Holding Corporation (3116); Kmart Operations LLC (6546); Sears Operations LLC (4331); Sears, Roebuck and Co. (0680); ServiceLive Inc. (6774); SHC Licensed Business LLC (3718); A&E Factory Service, LLC (6695); A&E Home Delivery, LLC (0205); A&E Lawn & Garden, LLC (5028); A&E Signature Service, LLC (0204); FBA Holdings Inc. (6537); Innovel Solutions, Inc. (7180); Kmart Corporation (9500); MaxServ, Inc. (7626); Private Brands, Ltd. (4022); Sears Development Co. (6028); Sears Holdings Management Corporation (2148); Sears Home & Business Franchises, Inc. (6742); Sears Home Improvement Products, Inc. (8591); Sears Insurance Services, L.L.C. (7182); Sears Procurement Services, Inc. (2859); Sears Protection Company (1250); Sears Protection Company (PR) Inc. (4861); Sears Roebuck Acceptance Corp. (0535); SR—Rover de Puerto Rico, LLC (f/k/a Sears, Roebuck de Puerto Rico, Inc.) (3626); SYW Relay LLC (1870); Wally Labs LLC (None); SHC Promotions LLC (9626); Big Beaver of Florida Development, LLC (None); California Builder Appliances, Inc. (6327); Florida Builder Appliances, Inc. (9133); KBL Holding Inc. (1295); KLC, Inc. (0839); Kmart of Michigan, Inc. (1696); Kmart of Washington LLC (8898); Kmart Stores of Illinois LLC (8897); Kmart Stores of Texas LLC (8915); MyGofer LLC (5531); Rover Brands Business Unit, LLC (4658); Sears Holdings Publishing Company, LLC. (5554); Sears Protection Company (Florida), L.L.C. (4239); SHC Desert Springs, LLC (None); SOE, Inc. (9616); StarWest, LLC (5379); STI Merchandising, Inc. (0188); Troy Coolidge No. 13, LLC (None); BlueLight.com, Inc. (7034); Sears Brands, L.L.C. (4664); Sears Buying Services, Inc. (6533); Kmart.com LLC (9022); Sears Brands Management Corporation (5365); and SRe Holding Corporation (4816). The location of the Debtors’ corporate headquarters is 3333 Beverly Road, Hoffman Estates, Illinois 60179.


In re: Sears Holdings Corporation, et al.

Debtors

  

Case No. 18-23538 (RDD)

Reporting Period: September 1 – October 5, 2019

Federal Tax I.D. # 20-1920798

 

The following notes, statements and limitations should be referred to, and referenced in connection with, any review of the MOR.

 

  1.

Basis of Presentation. The Debtors are filing their consolidated monthly operating report (the “MOR”) solely for purposes of complying with the monthly operating requirements applicable in the Debtors’ chapter 11 cases. The MOR is in a format acceptable to the U.S. Trustee for the Southern District of New York (the “U.S. Trustee”). The MOR should not be relied upon by any persons for information relating to current or future financial conditions, events, or performance of any of the Debtors or their affiliates.

In preparing the MOR, the Debtors relied on financial data derived from their books and records that was available at the time of preparation. Subsequent information or discovery may result in material changes to the MOR and errors or omissions may exist. Notwithstanding any such discovery, new information, or errors or omissions, the Debtors do not undertake any obligation or commitment to update the MOR.

This MOR has not been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and does not include all of the information and footnotes required by U.S. GAAP. Therefore, there can be no assurance that the consolidated financial information presented herein is complete, and readers are strongly cautioned not to place undue reliance on the MOR.

The information furnished in this report includes primarily normal recurring adjustments but does not include all the adjustments that would typically be made for the quarterly and annual consolidated financial statements to be in accordance with U.S. GAAP.

Furthermore, the monthly financial information contained herein has not been subjected to the same level of accounting review and testing that the Debtors apply in the preparation of their quarterly and annual consolidated financial information in accordance with U.S. GAAP. Accordingly, upon the application of such procedures, the Debtors believe that the financial information may be subject to change, and these changes could be material.

In future periods, any changes to prior period balances will be reflected in the current month’s MOR.

The results of operations contained herein are not necessarily indicative of results that may be expected from any other period or for the full year and may not necessarily reflect the consolidated results of operations and financial position of the Debtors in the future.

 

  2.

Reporting Period. Unless otherwise noted herein, the MOR generally reflects the Debtors’ books and records and financial activity occurring during the applicable reporting period. Except as otherwise noted, no adjustments have been made for activity occurring after the close of the reporting period.

 

  3.

Consolidated Entity Accounts Payable and Disbursements Systems. Cash was received and disbursed by the Debtors as described in the Motion of Debtors for Authority


In re: Sears Holdings Corporation, et al.

Debtors

  

Case No. 18-23538 (RDD)

Reporting Period: September 1 – October 5, 2019

Federal Tax I.D. # 20-1920798

 

  to (I) Continue Using Existing Cash Management System, Bank Accounts, and Business Forms, (II) Implement Ordinary Course Changes to Cash Management System, (III) Continue Intercompany Transactions, and (IV) Provide Administrative Expense Priority for Post-Petition Intercompany Claims and Related Relief (the “Cash Management Motion”) to the extent approved in the order granting the Cash Management Motion on a final basis (the “Final Cash Management Order”) [ECF No. 1394].

On the Closing, in accordance with the terms of the Asset Purchase Agreement (as defined in the Sale Order), all of the Debtors’ bank accounts, other than those accounts listed on the annexed MOR-1c.1 schedule titled “Bank Account Information,” were transferred to the Buyer (as defined in the Sale Order), not including any cash in such transferred bank accounts.

 

  4.

Accuracy. The financial information disclosed herein was not prepared in accordance with federal or state securities laws or other applicable non-bankruptcy law or in lieu of complying with any periodic reporting requirements thereunder. Persons and entities trading in or otherwise purchasing, selling, or transferring the claims against or equity interests in the Debtors should evaluate this financial information in light of the purposes for which it was prepared. The Debtors are not liable for and undertake no responsibility to indicate variations from securities laws or for any evaluations of the Debtors based on this financial information or any other information.

 

  5.

Debtor-in-Possession Financing. On November 30, 2018, the Debtors received authorization from the Bankruptcy Court to access their $1,830,378,380 Debtor-in-Possession ABL Facility on a final basis pursuant to the Final Order (I) Authorizing the Debtors to (A) Obtain Post-Petition Financing, (B) Grant Senior Secured Priming Liens and Superpriority Administrative Expense Claims, and (C) Utilize Cash Collateral; (II) Granting Adequate Protection to the Pre-Petition Secured Parties; (III) Modifying the Automatic Stay; and (IV) Granting Related Relief [ECF No. 955] (the “Final DIP ABL Order”), and on December 28, 2018 the Debtors received authorization to access on a final basis their $350 million Junior Debtor-in-Possession Facility pursuant to the Final Junior DIP Order (I) Authorizing the Debtors to (A) Obtain Post-Petition Financing and (B) Grant Secured Priming Liens and Superpriority Administrative Expense Claim; (II) Modifying the Automatic Stay; and (IV) Granting Related Relief [ECF No. 1436] (the “Final Junior DIP Order,” and together with the Final ABL DIP Order, the “DIP Orders”) and the documents governing the Debtor-in-Possession financing thereunder (the “DIP Loan Documents”). Please see the DIP Orders for additional detail.

Pursuant to the Sale Order, on the Closing, prepetition secured debt under the Final DIP ABL Order was repaid, and secured obligations under the Final Junior DIP Order were rolled into new financing of the Buyer and otherwise discharged as against the Debtors.

 

  6.

Payment of Pre-Petition Claims Pursuant to Court Orders. Within the first two days of the Debtors’ chapter 11 cases, the Bankruptcy Court entered orders (the “First Day Orders”) authorizing, but not directing, the Debtors to pay, on an interim basis, certain pre-petition (a) claims of critical vendors, shippers, warehousemen, other lien claimants,


In re: Sears Holdings Corporation, et al.

Debtors

  

Case No. 18-23538 (RDD)

Reporting Period: September 1 – October 5, 2019

Federal Tax I.D. # 20-1920798

 

  and foreign creditors; (b) taxes; (c) employee wages, salaries and other compensation and benefits; and (d) obligations related to the use of the Debtors’ cash management system, among other things. On November 16, 2018, the Bankruptcy Court approved the relief requested in connection with the First Day Orders on a final basis, except for the Final Cash Management Order, which was entered on December 21, 2018. To the extent any payments were made on account of such claims or obligations following the commencement of these chapter 11 cases pursuant to the authority granted to the Debtors by the Bankruptcy Court under the First Day Orders, such payments have been included in the MOR unless otherwise noted.

As stated above, pursuant to the Sale Order, on the Closing, prepetition secured debt under the Final DIP ABL Order was repaid, and secured obligations under the Final Junior DIP Order were rolled into new financing of the Buyer and otherwise discharged as against the Debtors.

 

  7.

Reservation of Rights. The Debtors reserve all rights to amend or supplement the MOR in all respects, as may be necessary or appropriate. Nothing contained in this MOR shall constitute a waiver of any of the Debtors’ rights or an admission with respect to their chapter 11 cases.

 

  8.

Specific MOR Disclosures.

 

  a.

Notes to MOR-la: The net cash receipts represent cash received by each Debtor assigned bank account and excludes the “flow through” disbursements used to pay the Buyer’s accounts payable and payroll.

 

  b.

Notes to MOR-1b: Certain Debtors make disbursements on behalf of other Debtors. The net cash disbursements represent cash disbursed by the applicable Debtor excluding disbursements made on behalf of other Debtors, which are reflected on the accounts of the Debtors on whose behalf they are made. The total disbursements (for quarterly fee purposes) represent the disbursements made on behalf of each affiliated Debtor and excludes the “flow through” disbursements used to pay the Buyer’s accounts payable and payroll.

 

  c.

Notes to MOR-1c.1 & 1c.2: All amounts listed are the bank balances as of the dates in the footnotes on MOR-1c.2. The Debtors have, on a timely basis, performed bank account reconciliations in the ordinary course of business. Due to the level of detailed records, copies of the bank account statements and reconciliations are available for inspection only upon request.

 

  d.

Notes to MOR-1d: This MOR lists the professional fees paid during this reporting period to Restructuring Professionals retained by the Debtors in these chapter 11 cases.

 

  e.

Notes to MOR-2 & MOR-3: The amounts currently classified as liabilities subject to compromise may be subject to future adjustments depending on Bankruptcy


In re: Sears Holdings Corporation, et al.

Debtors

  

Case No. 18-23538 (RDD)

Reporting Period: September 1 – October 5, 2019

Federal Tax I.D. # 20-1920798

 

  Court actions, payments pursuant to Bankruptcy Court orders, further developments with respect to, among other things, the reconciliation and adjudication of claims, determinations of the secured status of certain claims, the value of any collateral securing such claims, rejection of executory contracts, or other events. The following balance sheet accounts have been reclassified to liabilities subject to compromise (“LSTC”) for this reporting period: short-term borrowings, current portion of long-term debt, intercompany payables, certain other current liabilities, long-term debt, unearned revenues and other long-term liabilities. These LSTC are offset by investment in non-debtor subsidiaries and with the following recorded in prepaid expenses and other current assets and other long-term assets: deferred tax credits, tax credits, and deferred acquisition costs related to new protection service agreements. Intercompany receivables and payables between the Debtors and non-debtor entities net to zero in the Debtors’ consolidated balance sheet. The Debtors continue to evaluate their assets and liabilities, and any adjustments will be reflected in next month’s MOR.

 

  f.

Notes to MOR-4a: For status of post-petition tax payments, see disclosures as noted on MOR-4a. Due to the size and detail of such records, (i) copies of IRS Form 6123 or payment receipts; (ii) copies of tax returns filed during the reporting period; and (iii) a taxes aging schedule will be made available upon reasonable request in writing to bankruptcy counsel for the Debtors.

 

  g.

Notes to MOR-4b: As of the date of this report, there is an ongoing dispute between the Debtors and the Buyer regarding certain post-petition payables.

 

  h.

Notes to MOR-4c: As of this reporting period, there is an ongoing dispute between the Debtors and the Buyer regarding certain cash and cash proceeds received by the Buyer that the Debtors believe should be transferred to the Debtors’ accounts. The Debtors have recorded a $100 million receivable due from the Buyer for the amounts in dispute, including the post-petition payables referenced in paragraph (g) of these Notes. This receivable has since been reduced for amounts received from the Buyer.


UNITED STATES BANKRUPTCY COURT

SOUTHERN DISTRICT OF NEW YORK

 

In re: SEARS HOLDINGS CORPORATION, et al.                   Case No.   

 18-23538 (RDD)                     

Debtors      Reporting Period:   

 9/1/19 – 10/5/19

     Federal Tax I.D. No.   

 20-1920798

CORPORATE MONTHLY OPERATING REPORT

 

REQUIRED DOCUMENTS

   Form No.     

Document
Attached

   Explanation Attached  
Schedule of Cash Receipts      MOR-1a      X   
Schedule of Cash Disbursements      MOR-1b & 1b.1      X   
Bank Reconciliation (or copies of debtor’s bank reconciliations)      MOR-1c.1 & 1c.2 & 1c.3      X   

Copies of bank statements

           Available Upon Request  

Cash disbursements journals

           Available Upon Request  
Schedule of Retained Restructuring Professionals Fees      MOR-1d      X   
Statement of Operations      MOR-2      X   
Balance Sheet      MOR-3      X   
Status of Post-petition Taxes      MOR-4a      X   

Copies of IRS Form 6123 or payment receipt

           Available Upon Request  

Copies of tax returns filed during reporting period

           Available Upon Request  
Summary of Unpaid Post-petition Debts      MOR-4b      X   

Listing of Aged Accounts Payable

           Available Upon Request  
Accounts Receivable Reconciliation and Aging      MOR-4c      X   
Payments to Insiders      MOR-5      X   
Debtor Questionnaire      MOR-6      X   

I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and the attached documents are true and correct to the best of my knowledge and belief.

 

/s/ Mohsin Y. Meghji   1/17/20  

 

Signature of Authorized Individual   Date  
Mohsin Y. Meghji   Chief Restructuring Officer
Printed Name of Authorized Individual   Title of Authorized Individual

 

MOR

PAGE 1 OF 17


In re: SEARS HOLDINGS CORPORATION, et al.                   Case No.   

 18-23538 (RDD)                     

(Jointly Administered)      Reporting Period:   

 9/1/19 – 10/5/19

     Federal Tax I.D. No.   

 20-1920798

NOTES TO MONTHLY OPERATING REPORT

The Monthly Operating Report (“MOR”) includes activity for the following Debtors:

 

    #    

  

DEBTOR ENTITY NAME

   FILING
DATE
   BANKRUPTCY
CASE NUMBER
   COMPLETE EIN OR
OTHER TAXPAYER I.D.
1.    SEARS, ROEBUCK AND CO.    10/15/18    18-23537    36-1750680
2.    SEARS HOLDINGS CORPORATION    10/15/18    18-23538    20-1920798
3.    KMART HOLDING CORPORATION    10/15/18    18-23539    32-0073116
4.    KMART OPERATIONS LLC    10/15/18    18-23540    32-0456546
5.    SEARS OPERATIONS LLC    10/15/18    18-23541    35-2524331
6.    SERVICELIVE, INC.    10/15/18    18-23542    36-4616774
7.    A&E FACTORY SERVICE, LLC    10/15/18    18-23543    36-4486695
8.    A&E HOME DELIVERY, LLC    10/15/18    18-23544    37-1500205
9.    A&E LAWN & GARDEN, LLC    10/15/18    18-23545    13-4275028
10.    A&E SIGNATURE SERVICE, LLC    10/15/18    18-23546    37-1500204
11.    FBA HOLDINGS INC.    10/15/18    18-23547    36-4186537
12.    INNOVEL SOLUTIONS, INC.    10/15/18    18-23548    36-1857180
13.    KMART CORPORATION    10/15/18    18-23549    38-0729500
14.    MAXSERV, INC.    10/15/18    18-23550    74-2707626
15.    PRIVATE BRANDS, LTD.    10/15/18    18-23551    55-0544022
16.    SEARS DEVELOPMENT CO.    10/15/18    18-23552    36-2476028
17.    SEARS HOLDINGS MANAGEMENT CORPORATION    10/15/18    18-23553    20-3592148
18.    SEARS HOME & BUSINESS FRANCHISES, INC.    10/15/18    18-23554    98-0126742
19.    SEARS HOME IMPROVEMENT PRODUCTS, INC.    10/15/18    18-23555    25-1698591
20.    SEARS INSURANCE SERVICES, L.L.C.    10/15/18    18-23556    36-4287182
21.    SEARS PROCUREMENT SERVICES, INC.    10/15/18    18-23557    30-0092859
22.    SEARS PROTECTION COMPANY    10/15/18    18-23558    36-4471250
23.    SEARS PROTECTION COMPANY (PR) INC.    10/15/18    18-23559    66-0704861
24.    SEARS ROEBUCK ACCEPTANCE CORP.    10/15/18    18-23560    51-0080535
25.    SR-ROVER DE PUERTO RICO, LLC (f/k/a SEARS, ROEBUCK DE PUERTO RICO, INC.)    10/15/18    18-23561    66-0233626
26.    SYW RELAY LLC    10/15/18    18-23562    35-2561870
27.    WALLY LABS LLC    10/15/18    18-23563    None
28.    BIG BEAVER OF FLORIDA DEVELOPMENT, LLC    10/15/18    18-23564    None
29.    CALIFORNIA BUILDER APPLIANCES, INC.    10/15/18    18-23565    68-0406327
30.    FLORIDA BUILDER APPLIANCES, INC.    10/15/18    18-23566    36-3619133
31.    KBL HOLDING INC.    10/15/18    18-23567    26-0031295
32.    KLC, INC.    10/15/18    18-23568    75-2490839
33.    SEARS PROTECTION COMPANY (FLORIDA), LLC    10/15/18    18-23569    20-0224239
34.    KMART OF WASHINGTON LLC    10/15/18    18-23570    61-1448898
35.    KMART STORES OF ILLINOIS LLC    10/15/18    18-23571    61-1448897
36.    KMART STORES OF TEXAS LLC    10/15/18    18-23572    61-1448915
37.    MYGOFER LLC    10/15/18    18-23573    26-4005531
38.    ROVER BRANDS BUSINESS UNIT, LLC    10/15/18    18-23574    42-1564658
39.    SEARS HOLDINGS PUBLISHING COMPANY, LLC    10/15/18    18-23575    26-0075554
40.    KMART OF MICHIGAN, INC.    10/15/18    18-23576    38-3551696
41.    SHC DESERT SPRINGS, LLC    10/15/18    18-23577    None
42.    SOE, INC.    10/15/18    18-23578    83-0399616
43.    STARWEST, LLC    10/15/18    18-23579    37-1495379
44.    STI MERCHANDISING, INC.    10/15/18    18-23580    38-2760188
45.    TROY COOLIDGE NO. 13, LLC    10/15/18    18-23581    None
46.    BLUELIGHT.COM, INC.    10/15/18    18-23582    77-0527034
47.    SEARS BRANDS, L.L.C.    10/15/18    18-23583    42-1564664
48.    SEARS BUYING SERVICES, INC.    10/15/18    18-23584    36-3256533
49.    KMART.COM LLC    10/15/18    18-23585    77-0529022
50.    SEARS BRANDS MANAGEMENT CORPORATION    10/15/18    18-23586    36-2555365
51.    SHC LICENSED BUSINESS LLC    10/18/18    18-23616    37-1783718
52.    SHC PROMOTIONS LLC    10/22/18    18-23630    26-4209626
53.    SRE HOLDING CORPORATION    1/7/19    19-22031    46-4344816

 

Notes to MOR

PAGE 2 OF 17


In re: SEARS HOLDINGS CORPORATION, et al.                   Case No.   

 18-23538 (RDD)                     

(Jointly Administered)      Reporting Period:   

 9/1/19 – 10/5/19

MOR-1a      Federal Tax I.D. No.   

 20-1920798

(in US Dollars)        
(Unaudited)        

SCHEDULE OF RECEIPTS

 

    #    

  

DEBTOR ENTITY NAME

   BANKRUPTCY
CASE NUMBER
   NET CASH
RECEIPTS (a)
 
1.    SEARS, ROEBUCK AND CO.    18-23537    $ 6,361,094  
2.    SEARS HOLDINGS CORPORATION    18-23538      —    
3.    KMART HOLDING CORPORATION    18-23539      —    
4.    KMART OPERATIONS LLC    18-23540      —    
5.    SEARS OPERATIONS LLC    18-23541      —    
6.    SERVICELIVE, INC.    18-23542      —    
7.    A&E FACTORY SERVICE, LLC    18-23543      —    
8.    A&E HOME DELIVERY, LLC    18-23544      —    
9.    A&E LAWN & GARDEN, LLC    18-23545      —    
10.    A&E SIGNATURE SERVICE, LLC    18-23546      —    
11.    FBA HOLDINGS INC.    18-23547      —    
12.    INNOVEL SOLUTIONS, INC.    18-23548      —    
13.    KMART CORPORATION    18-23549      —    
14.    MAXSERV, INC.    18-23550      —    
15.    PRIVATE BRANDS, LTD.    18-23551      —    
16.    SEARS DEVELOPMENT CO.    18-23552      —    
17.    SEARS HOLDINGS MANAGEMENT CORPORATION    18-23553      —    
18.    SEARS HOME & BUSINESS FRANCHISES, INC.    18-23554      —    
19.    SEARS HOME IMPROVEMENT PRODUCTS, INC    18-23555      —    
20.    SEARS INSURANCE SERVICES, L.L.C.    18-23556      —    
21.    SEARS PROCUREMENT SERVICES, INC.    18-23557      —    
22.    SEARS PROTECTION COMPANY    18-23558      —    
23.    SEARS PROTECTION COMPANY (PR) INC.    18-23559      —    
24.    SEARS ROEBUCK ACCEPTANCE CORP.    18-23560      —    
25.    SR-ROVER DE PUERTO RICO, LLC (f/k/a SEARS, ROEBUCK DE PUERTO RICO, INC.)    18-23561      —    
26.    SYW RELAY LLC    18-23562      —    
27.    WALLY LABS LLC    18-23563      —    
28.    BIG BEAVER OF FLORIDA DEVELOPMENT, LLC    18-23564      —    
29.    CALIFORNIA BUILDER APPLIANCES, INC.    18-23565      —    
30.    FLORIDA BUILDER APPLIANCES, INC.    18-23566      —    
31.    KBL HOLDING INC.    18-23567      —    
32.    KLC, INC.    18-23568      —    
33.    SEARS PROTECTION COMPANY (FLORIDA), LLC    18-23569      —    
34.    KMART OF WASHINGTON LLC    18-23570      —    
35.    KMART STORES OF ILLINOIS LLC    18-23571      —    
36.    KMART STORES OF TEXAS LLC    18-23572      —    
37.    MYGOFER LLC    18-23573      —    
38.    ROVER BRANDS BUSINESS UNIT, LLC    18-23574      —    
39.    SEARS HOLDINGS PUBLISHING COMPANY, LLC    18-23575      —    
40.    KMART OF MICHIGAN, INC.    18-23576      —    
41.    SHC DESERT SPRINGS, LLC    18-23577      —    
42.    SOE, INC.    18-23578      —    
43.    STARWEST, LLC    18-23579      —    
44.    STI MERCHANDISING, INC.    18-23580      —    
45.    TROY COOLIDGE NO. 13, LLC    18-23581      —    
46.    BLUELIGHT.COM, INC.    18-23582      —    
47.    SEARS BRANDS, L.L.C.    18-23583      —    
48.    SEARS BUYING SERVICES, INC.    18-23584      —    
49.    KMART.COM LLC    18-23585      —    
50.    SEARS BRANDS MANAGEMENT CORPORATION    18-23586      —    
51.    SHC LICENSED BUSINESS LLC    18-23616      —    
52.    SHC PROMOTIONS LLC    18-23630      —    
53.    SRE HOLDING CORPORATION    19-22031      —    
        

 

 

 
   TOTAL       $ 6,361,094  
        

 

 

 

Footnote:

(a)

The net cash receipts represent cash received by each Debtor’s assigned bank account and excludes the “flow through” disbursements used to pay the Buyer’s accounts payable and payroll.

 

MOR-1a

PAGE 3 OF 17


In re: SEARS HOLDINGS CORPORATION, et al.                   Case No.   

 18-23538 (RDD)                     

(Jointly Administered)      Reporting Period:   

 9/1/19 – 10/5/19

MOR-1b      Federal Tax I.D. No.   

 20-1920798

(in US Dollars)        
(Unaudited)        

SCHEDULE OF DISBURSEMENTS

 

    #    

    

DEBTOR ENTITY NAME

   BANKRUPTCY
CASE NUMBER
     NET CASH
DISBURSEMENTS
(a)
    PLUS: ESTATE
DISBURSEMENTS
MADE BY
OUTSIDE
SOURCES
(i.e. escrow accounts)
     TOTAL
DISBURSEMENTS
(FOR QUARTERLY
FEE PURPOSES)
    F/N  
  1.      SEARS, ROEBUCK AND CO.      18-23537      $ 1,185,332       —        $ 1,185,332    
  2.      SEARS HOLDINGS CORPORATION      18-23538        49,997       —          49,997       (b)  
  3.      KMART HOLDING CORPORATION      18-23539        —         —          —      
  4.      KMART OPERATIONS LLC      18-23540        —         —          —      
  5.      SEARS OPERATIONS LLC      18-23541        34,311       —          34,311    
  6.      SERVICELIVE, INC.      18-23542        100       —          100    
  7.      A&E FACTORY SERVICE, LLC      18-23543        —         —          —      
  8.      A&E HOME DELIVERY, LLC      18-23544        —         —          —      
  9.      A&E LAWN & GARDEN, LLC      18-23545        —         —          —      
  10.      A&E SIGNATURE SERVICE, LLC      18-23546        —         —          —      
  11.      FBA HOLDINGS INC.      18-23547        —         —          —      
  12.      INNOVEL SOLUTIONS, INC.      18-23548        3,627       —          3,627    
  13.      KMART CORPORATION      18-23549        11,225       —          11,225    
  14.      MAXSERV, INC.      18-23550        —         —          —      
  15.      PRIVATE BRANDS, LTD.      18-23551        —         —          —      
  16.      SEARS DEVELOPMENT CO.      18-23552        —         —          —      
  17.      SEARS HOLDINGS MANAGEMENT CORPORATION      18-23553        37,948       —          37,948    
  18.      SEARS HOME & BUSINESS FRANCHISES, INC.      18-23554        —         —          —      
  19.      SEARS HOME IMPROVEMENT PRODUCTS, INC      18-23555        198       —          198    
  20.      SEARS INSURANCE SERVICES, L.L.C.      18-23556        —         —          —      
  21.      SEARS PROCUREMENT SERVICES, INC.      18-23557        —         —          —      
  22.      SEARS PROTECTION COMPANY      18-23558        —         —          —      
  23.      SEARS PROTECTION COMPANY (PR) INC.      18-23559        —         —          —      
  24.      SEARS ROEBUCK ACCEPTANCE CORP.      18-23560        —         —          —      
  25.      SR-ROVER DE PUERTO RICO, LLC (f/k/a SEARS, ROEBUCK DE PUERTO RICO, INC.)      18-23561        1,372       —          1,372    
  26.      SYW RELAY LLC      18-23562        —         —          —      
  27.      WALLY LABS LLC      18-23563        —         —          —      
  28.      BIG BEAVER OF FLORIDA DEVELOPMENT, LLC      18-23564        —         —          —      
  29.      CALIFORNIA BUILDER APPLIANCES, INC.      18-23565        350       —          350    
  30.      FLORIDA BUILDER APPLIANCES, INC.      18-23566        —         —          —      
  31.      KBL HOLDING INC.      18-23567        —         —          —      
  32.      KLC, INC.      18-23568        —         —          —      
  33.      SEARS PROTECTION COMPANY (FLORIDA), LLC      18-23569        —         —          —      
  34.      KMART OF WASHINGTON LLC      18-23570        12       —          12    
  35.      KMART STORES OF ILLINOIS LLC      18-23571        —         —          —      
  36.      KMART STORES OF TEXAS LLC      18-23572        39       —          39    
  37.      MYGOFER LLC      18-23573        —         —          —      
  38.      ROVER BRANDS BUSINESS UNIT, LLC      18-23574        —         —          —      
  39.      SEARS HOLDINGS PUBLISHING COMPANY, LLC      18-23575        —         —          —      
  40.      KMART OF MICHIGAN, INC.      18-23576        31       —          31    
  41.      SHC DESERT SPRINGS, LLC      18-23577        —         —          —      
  42.      SOE, INC.      18-23578        (2,402     —          (2,402     (c)  
  43.      STARWEST, LLC      18-23579        —         —          —      
  44.      STI MERCHANDISING, INC.      18-23580        —         —          —      
  45.      TROY COOLIDGE NO. 13, LLC      18-23581        —         —          —      
  46.      BLUELIGHT.COM, INC.      18-23582        —         —          —      
  47.      SEARS BRANDS, L.L.C.      18-23583        —         —          —      
  48.      SEARS BUYING SERVICES, INC.      18-23584        —         —          —      
  49.      KMART.COM LLC      18-23585        —         —          —      
  50.      SEARS BRANDS MANAGEMENT CORPORATION      18-23586        —         —          —      
  51.      SHC LICENSED BUSINESS LLC      18-23616        —         —          —      
  52.      SHC PROMOTIONS LLC      18-23630        —         —          —      
  53.      SRE HOLDING CORPORATION      19-22031        —         —          —      
        

 

 

   

 

 

    

 

 

   
   TOTAL       $ 1,322,141       —        $ 1,322,141    
        

 

 

   

 

 

    

 

 

   

Footnote(s):

(a)

The net cash disbursements represent cash disbursed by the Debtor entity excluding disbursements made on behalf of other Debtor entities, which are reflected on the accounts of the Debtors on whose behalf they are made. “Flow through” disbursements used to pay the Buyer’s accounts payable and payroll are excluded.

(b)

Sears Holdings Corporation (18-23538) disbursements made by outside sources represent professional fee payments.

(c)

SOE, Inc. ($2,402) represents a reversal of payroll expense from August 2019 report, net zero for the Q3’19.

 

MOR-1b

PAGE 4 OF 17


In re: SEARS HOLDINGS CORPORATION, et al.                   Case No.   

 18-23538 (RDD)                     

(Jointly Administered)      Reporting Period:   

 9/1/19 – 10/5/19

MOR-1b.1      Federal Tax I.D. No.   

 20-1920798

(in US Dollars)        
(Unaudited)        

QTD SUMMARY OF DISBURSEMENTS BY DEBTOR

 

                   Q3’19  
           

BANKRUPTCY

     TOTAL
DISBURSEMENTS
(FOR QUARTERLY
FEE PURPOSES)
     TOTAL
DISBURSEMENTS
(FOR QUARTERLY
FEE PURPOSES)
     TOTAL
DISBURSEMENTS
(FOR QUARTERLY
FEE PURPOSES)
    QTD TOTAL
DISBURSEMENTS
(FOR QUARTERLY
FEE PURPOSES)
 

    #    

    

DEBTOR ENTITY NAME

   CASE NUMBER      JUL. 7 - AUG. 3, 2019      AUG. 4 - 31, 2019      SEP. 1 - OCT. 5, 2019     JUL. 7 - OCT. 5, 2019  
  1.      SEARS, ROEBUCK AND CO.      18-23537      $ 848,097      $ 566,578      $ 1,185,332     $ 2,600,008  
  2.      SEARS HOLDINGS CORPORATION      18-23538        37,199,118        9,650,402        49,997       46,899,517  
  3.      KMART HOLDING CORPORATION      18-23539        —          —          —         —    
  4.      KMART OPERATIONS LLC      18-23540        2,738        32,989        —         35,727  
  5.      SEARS OPERATIONS LLC      18-23541        80,732        69,816        34,311       184,859  
  6.      SERVICELIVE, INC.      18-23542        —          —          100       100  
  7.      A&E FACTORY SERVICE, LLC      18-23543        2,761        —          —         2,761  
  8.      A&E HOME DELIVERY, LLC      18-23544        —          —          —         —    
  9.      A&E LAWN & GARDEN, LLC      18-23545        —          —          —         —    
  10.      A&E SIGNATURE SERVICE, LLC      18-23546        —          —          —         —    
  11.      FBA HOLDINGS INC.      18-23547        —          —          —         —    
  12.      INNOVEL SOLUTIONS, INC.      18-23548        239,135        1,694        3,627       244,456  
  13.      KMART CORPORATION      18-23549        59,001        133,194        11,225       203,420  
  14.      MAXSERV, INC.      18-23550        —          —          —         —    
  15.      PRIVATE BRANDS, LTD.      18-23551        —          —          —         —    
  16.      SEARS DEVELOPMENT CO.      18-23552        —          —          —         —    
  17.      SEARS HOLDINGS MANAGEMENT CORPORATION      18-23553        18,654        21,719        37,948       78,322  
  18.      SEARS HOME & BUSINESS FRANCHISES, INC.      18-23554        —          —          —         —    
  19.      SEARS HOME IMPROVEMENT PRODUCTS, INC      18-23555        68        —          198       266  
  20.      SEARS INSURANCE SERVICES, L.L.C.      18-23556        —          —          —         —    
  21.      SEARS PROCUREMENT SERVICES, INC.      18-23557        —          —          —         —    
  22.      SEARS PROTECTION COMPANY      18-23558        200        16,302        —         16,502  
  23.      SEARS PROTECTION COMPANY (PR) INC.      18-23559        —          —          —         —    
  24.      SEARS ROEBUCK ACCEPTANCE CORP.      18-23560        —          —          —         —    
  25.      SR-ROVER DE PUERTO RICO, LLC (f/k/a SEARS, ROEBUCK DE PUERTO RICO, INC.)      18-23561        —          —          1,372       1,372  
  26.      SYW RELAY LLC      18-23562        —          —          —         —    
  27.      WALLY LABS LLC      18-23563        —          —          —         —    
  28.      BIG BEAVER OF FLORIDA DEVELOPMENT, LLC      18-23564        —          —          —         —    
  29.      CALIFORNIA BUILDER APPLIANCES, INC.      18-23565        13,290        —          350       13,640  
  30.      FLORIDA BUILDER APPLIANCES, INC.      18-23566        —          —          —         —    
  31.      KBL HOLDING INC.      18-23567        —          —          —         —    
  32.      KLC, INC.      18-23568        —          —          —         —    
  33.      SEARS PROTECTION COMPANY (FLORIDA), LLC      18-23569        —          —          —         —    
  34.      KMART OF WASHINGTON LLC      18-23570        74        67        12       153  
  35.      KMART STORES OF ILLINOIS LLC      18-23571        512        616        —         1,128  
  36.      KMART STORES OF TEXAS LLC      18-23572        —          —          39       39  
  37.      MYGOFER LLC      18-23573        —          —          —         —    
  38.      ROVER BRANDS BUSINESS UNIT, LLC      18-23574        —          —          —         —    
  39.      SEARS HOLDINGS PUBLISHING COMPANY, LLC      18-23575        —          —          —         —    
  40.      KMART OF MICHIGAN, INC.      18-23576        22        —          31       53  
  41.      SHC DESERT SPRINGS, LLC      18-23577        —          —          —         —    
  42.      SOE, INC.      18-23578        —          2,402        (2,402     —    
  43.      STARWEST, LLC      18-23579        —          —          —         —    
  44.      STI MERCHANDISING, INC.      18-23580        —          —          —         —    
  45.      TROY COOLIDGE NO. 13, LLC      18-23581        —          —          —         —    
  46.      BLUELIGHT.COM, INC.      18-23582        —          —          —         —    
  47.      SEARS BRANDS, L.L.C.      18-23583        —          —          —         —    
  48.      SEARS BUYING SERVICES, INC.      18-23584        —          —          —         —    
  49.      KMART.COM LLC      18-23585        —          —          —         —    
  50.      SEARS BRANDS MANAGEMENT CORPORATION      18-23586        —          —          —         —    
  51.      SHC LICENSED BUSINESS LLC      18-23616        —          —          —         —    
  52.      SHC PROMOTIONS LLC      18-23630        —          —          —         —    
  53.      SRE HOLDING CORPORATION      19-22031        —          —          —         —    
        

 

 

    

 

 

    

 

 

   

 

 

 
   Total       $ 38,464,403      $ 10,495,780      $ 1,322,141     $ 50,282,324  
        

 

 

    

 

 

    

 

 

   

 

 

 

 

MOR-1b.1

PAGE 5 OF 17


 In re: SEARS HOLDINGS CORPORATION, et al.                   Case No.   

 18-23538 (RDD)                     

(Jointly Administered)      Reporting Period:   

 9/1/19 – 10/5/19

MOR-1c.1      Federal Tax I.D. No.   

 20-1920798

(in US Dollars)        
(Unaudited)        

BANK ACCOUNT INFORMATION

 

    #    

 

LEGAL ENTITY

  CASE
NUMBER
 

BANK

  LAST 4
DIGITS
ACCOUNT #
    BANK
BALANCE
   

F/N

Debtor Bank Accounts Opened Pre-Closing (Open)

 

 

  1.

 

Kmart Corporation

  18-23549  

Bank of America, N.A.

    3816     $ 2,826     (a)

  2.

 

Kmart Corporation

  18-23549  

Bank of America, N.A.

    5450       10,000,000     (b)

  3.

 

Kmart Corporation

  18-23549  

Bank of America, N.A.

    8978       3,393,612     (b)

  4.

 

Sears, Roebuck and Co.

  18-23537  

Bank of America, N.A.

    6570       53,408,130     (b)

  5.

 

Sears, Roebuck and Co.

  18-23537  

Bank of America, N.A.

    8279       490,835     (b)

  6.

 

Sears, Roebuck and Co.

  18-23537  

Bank of America, N.A.

    8965       43,502,357     (b)

  7.

 

Sears, Roebuck and Co.

  18-23537  

Bank of America, N.A.

    9540       —       (b)

Debtor Bank Accounts Opened Post-Closing

 

 

  8.

 

Sears Holdings Corporation

  18-23538  

Axos Bank

    0143       1,757,032     (c)

  9.

 

Sears Holdings Management Corporation

  18-23553  

Bank of America, N.A.

    7354       —       (a)

10.

 

Sears Roebuck Acceptance Corp.

  18-23560  

Bank of America, N.A.

    8036       535     (a)

11.

 

Kmart Corporation

  18-23549  

Bank of America, N.A.

    7257       —       (a)

12.

 

Kmart Corporation

  18-23549  

Bank of America, N.A.

    7260       215,619     (a)

13.

 

Kmart Corporation

  18-23549  

Bank of America, N.A.

    7338       —       (a)

14.

 

Kmart Corporation

  18-23549  

Bank of America, N.A.

    7341       —       (a)

15.

 

Kmart Corporation

  18-23549  

Bank of America, N.A.

    8751       —       (a)

16.

 

Kmart Corporation

  18-23549  

Bank of America, N.A.

    8968       —       (a)

17.

 

Kmart Corporation

  18-23549  

Bank of America, N.A.

    8971       —       (a)

18.

 

Kmart Corporation

  18-23549  

Bank of America, N.A.

    8984       —       (a)

19.

 

Sears Holdings Management Corporation

  18-23553  

Bank of America, N.A.

    7367       —       (a)

20.

 

Sears, Roebuck and Co.

  18-23537  

Bank of America, N.A.

    7231       —       (b)

21.

 

Sears, Roebuck and Co.

  18-23537  

Bank of America, N.A.

    7244       2,686,913     (a)

22.

 

Sears, Roebuck and Co.

  18-23537  

Bank of America, N.A.

    7312       —       (a)

23.

 

Sears, Roebuck and Co.

  18-23537  

Bank of America, N.A.

    7325       —       (a)

24.

 

Sears, Roebuck and Co.

  18-23537  

Bank of America, N.A.

    8764       —       (a)

25.

 

Sears, Roebuck and Co.

  18-23537  

Bank of America, N.A.

    8997       50,801     (a)

26.

 

Sears, Roebuck and Co.

  18-23537  

Bank of America, N.A.

    9006       —       (a)

27.

 

Sears, Roebuck and Co.

  18-23537  

Bank of America, N.A.

    9019       —       (a)

Debtor Bank Accounts Opened Pre-Closing (Closed)

 

 

28.

 

Kmart Corporation

  18-23549  

BancorpSouth

    3945           (d)

29.

 

Kmart Corporation

  18-23549  

Bank of America, N.A.

    2637       N/A     (d)

30.

 

Kmart Corporation

  18-23549  

Bank of America, N.A.

    3428       N/A     (d)

31.

 

Kmart Corporation

  18-23549  

Bank of America, N.A.

    3884       N/A     (d)

32.

 

Kmart Corporation

  18-23549  

Bank of America, N.A.

    4067       N/A     (d)

33.

 

Kmart Corporation

  18-23549  

Bank of America, N.A.

    4339       N/A     (d)

34.

 

Kmart Corporation

  18-23549  

Bank of America, N.A.

    6688       N/A     (d)

35.

 

Kmart Corporation

  18-23549  

Bank of America, N.A.

    8793       N/A     (d)

36.

 

Kmart Corporation

  18-23549  

Bank of America, N.A.

    8832       N/A     (d)

37.

 

Kmart Corporation

  18-23549  

Bank Of Oklahoma

    5769       —       (d)

38.

 

Kmart Corporation

  18-23549  

Capital One Bank

    9632       —       (d)

39.

 

Kmart Corporation

  18-23549  

Cherokee State Bank

    0494       —       (d)

40.

 

Kmart Corporation

  18-23549  

Fidelity Bank

    2180       —       (d)

41.

 

Kmart Corporation

  18-23549  

First and Farmers Bank

    0543       —       (d)

42.

 

Kmart Corporation

  18-23549  

First Interstate Bank of Riverton

    1274       —       (d)

43.

 

Kmart Corporation

  18-23549  

First National Bank

    0001       —       (d)

44.

 

Kmart Corporation

  18-23549  

First National Bank of Grayson

    4081       —       (d)

45.

 

Kmart Corporation

  18-23549  

First Tennessee

    0555       —       (d)

46.

 

Kmart Corporation

  18-23549  

Hilltop National Bank

    4003       —       (d)

47.

 

Kmart Corporation

  18-23549  

M&T Bank

    2880       —       (d)

48.

 

Kmart Corporation

  18-23549  

NorState Federal Credit Union

    6752       —       (d)

 

MOR-1c.1

PAGE 6 OF 17


In re: SEARS HOLDINGS CORPORATION, et al.                   Case No.   

 18-23538 (RDD)                     

(Jointly Administered)      Reporting Period:   

 9/1/19 – 10/5/19

MOR-1c.1      Federal Tax I.D. No.   

 20-1920798

(in US Dollars)        
(Unaudited)        

BANK ACCOUNT INFORMATION

 

    #    

 

LEGAL ENTITY

  CASE
NUMBER
 

BANK

  LAST 4
DIGITS
ACCOUNT #
    BANK
BALANCE
   

F/N

49.

 

Kmart Corporation

  18-23549  

Old National Bank

    5501       —       (d)

50.

 

Kmart Corporation

  18-23549  

PNC Bank

    5929       —       (d)

51.

 

Kmart Corporation

  18-23549  

United Missouri Bank

    3100       —       (d)

52.

 

Kmart Corporation

  18-23549  

United Missouri Bank

    4642       —       (d)

53.

 

Kmart Corporation

  18-23549  

Wells Fargo

    5915       —       (d)

54.

 

Kmart Corporation

  18-23549  

Zions National Bank

    6778       —       (d)

55.

 

Sears, Roebuck and Co.

  18-23537  

Bank of America, N.A.

    0422       N/A     (d)

56.

 

Sears, Roebuck and Co.

  18-23537  

Bank of America, N.A.

    1496       N/A     (d)

57.

 

Sears, Roebuck and Co.

  18-23537  

Bank of America, N.A.

    1561       N/A     (d)

58.

 

Sears, Roebuck and Co.

  18-23537  

Bank of America, N.A.

    1579       N/A     (d)

59.

 

Sears, Roebuck and Co.

  18-23537  

Bank of America, N.A.

    2154       N/A     (d)

60.

 

Sears, Roebuck and Co.

  18-23537  

Bank of America, N.A.

    2439       N/A     (d)

61.

 

Sears, Roebuck and Co.

  18-23537  

Bank of America, N.A.

    2648       N/A     (d)

62.

 

Sears, Roebuck and Co.

  18-23537  

Bank of America, N.A.

    5505       N/A     (d)

63.

 

Sears, Roebuck and Co.

  18-23537  

Bank of America, N.A.

    6350       N/A     (d)

64.

 

Sears, Roebuck and Co.

  18-23537  

Bank of America, N.A.

    6388       N/A     (d)

65.

 

Sears, Roebuck and Co.

  18-23537  

Bank of America, N.A.

    8492       N/A     (d)

66.

 

Sears, Roebuck and Co.

  18-23537  

Bank of America, N.A.

    8501       N/A     (d)

67.

 

Sears, Roebuck and Co.

  18-23537  

PNC Bank

    2095       —       (d)

68.

 

Sears, Roebuck and Co.

  18-23537  

Regions Bank

    3439       —       (d)

69.

 

Sears, Roebuck and Co.

  18-23537  

Regions Bank

    5722       —       (d)

70.

 

Sears, Roebuck and Co.

  18-23537  

Wells Fargo

    5907       —       (d)

 

MOR-1c.1

PAGE 7 OF 17


In re: SEARS HOLDINGS CORPORATION, et al.                   Case No.   

 18-23538 (RDD)                     

(Jointly Administered)      Reporting Period:   

 9/1/19 – 10/5/19

MOR-1c.2      Federal Tax I.D. No.   

 20-1920798

(in US Dollars)        
(Unaudited)        

BANK ACCOUNT INFORMATION (CON’T)

Footnote(s):

(a)

The bank statement(s) are for the period from 8/31/19 through 10/4/19.

(b)

The bank statement(s) are for the period from 8/31/19 through 9/30/19.

(c)

The bank statement(s) are for the period from 9/3/19 through 9/30/19.

(d)

The bank account(s) have been closed.

 

MOR-1c.2

PAGE 8 OF 17


In re: SEARS HOLDINGS CORPORATION, et al.                   Case No.   

 18-23538 (RDD)                     

(Jointly Administered)      Reporting Period:   

 9/1/19 – 10/5/19

MOR-1c.3      Federal Tax I.D. No.   

 20-1920798

(in US Dollars)        
(Unaudited)        

BANK ACCOUNT INFORMATION

 

    #    

    

LEGAL ENTITY

   CASE
NUMBER
  

BANK

   LAST 4
DIGITS
ACCOUNT #
 
 

Bank Accounts Transferred to Buyer at Closing

 
      1.     

California Builder Appliances, Inc.

   18-23565   

Bank of America, N.A.

     6850  
  2.     

Florida Builder Appliances, Inc.

   18-23566   

Bank of America, N.A.

     7770  
  3.     

Innovel Solutions, Inc.

   18-23548   

Bank of America, N.A.

     3618  
  4.     

Kmart Corporation

   18-23549   

Banco Popular

     0247  
  5.     

Kmart Corporation

   18-23549   

Banco Popular

     6180  
  6.     

Kmart Corporation

   18-23549   

Bank of America, N.A.

     0136  
  7.     

Kmart Corporation

   18-23549   

Bank of America, N.A.

     0508  
  8.     

Kmart Corporation

   18-23549   

Bank of America, N.A.

     0986  
  9.     

Kmart Corporation

   18-23549   

Bank of America, N.A.

     0994  
  10.     

Kmart Corporation

   18-23549   

Bank of America, N.A.

     1000  
  11.     

Kmart Corporation

   18-23549   

Bank of America, N.A.

     2102  
  12.     

Kmart Corporation

   18-23549   

Bank of America, N.A.

     3295  
  13.     

Kmart Corporation

   18-23549   

Bank of America, N.A.

     3531  
  14.     

Kmart Corporation

   18-23549   

Bank of America, N.A.

     3896  
  15.     

Kmart Corporation

   18-23549   

Bank of America, N.A.

     3929  
  16.     

Kmart Corporation

   18-23549   

Bank of America, N.A.

     4404  
  17.     

Kmart Corporation

   18-23549   

Bank of America, N.A.

     6005  
  18.     

Kmart Corporation

   18-23549   

Bank of America, N.A.

     6911  
  19.     

Kmart Corporation

   18-23549   

Bank of America, N.A.

     7539  
  20.     

Kmart Corporation

   18-23549   

Bank of America, N.A.

     7542  
  21.     

Kmart Corporation

   18-23549   

Bank of America, N.A.

     7555  
  22.     

Kmart Corporation

   18-23549   

Bank of America, N.A.

     7743  
  23.     

Kmart Corporation

   18-23549   

Bank of America, N.A.

     7756  
  24.     

Kmart Corporation

   18-23549   

Bank of America, N.A.

     7769  
  25.     

Kmart Corporation

   18-23549   

Bank of America, N.A.

     7772  
  26.     

Kmart Corporation

   18-23549   

Bank of America, N.A.

     7785  
  27.     

Kmart Corporation

   18-23549   

Bank of America, N.A.

     7798  
  28.     

Kmart Corporation

   18-23549   

Bank of America, N.A.

     7808  
  29.     

Kmart Corporation

   18-23549   

Bank of America, N.A.

     7811  
  30.     

Kmart Corporation

   18-23549   

Bank of America, N.A.

     7824  
  31.     

Kmart Corporation

   18-23549   

Bank of America, N.A.

     7837  
  32.     

Kmart Corporation

   18-23549   

Bank of America, N.A.

     7970  
  33.     

Kmart Corporation

   18-23549   

BB&T Bank

     8654  
  34.     

Kmart Corporation

   18-23549   

Citizens Bank

     7910  
  35.     

Kmart Corporation

   18-23549   

First Bank and Trust Company

     9130  
  36.     

Kmart Corporation

   18-23549   

First Hawaiian Bank

     0940  
  37.     

Kmart Corporation

   18-23549   

First Interstate Bank of Billings NA

     2277  
  38.     

Kmart Corporation

   18-23549   

First Interstate Bank of Billings NA

     3730  
  39.     

Kmart Corporation

   18-23549   

First Security

     7014  
  40.     

Kmart Corporation

   18-23549   

First Security

     9005  
  41.     

Kmart Corporation

   18-23549   

First State Bank

     6705  
  42.     

Kmart Corporation

   18-23549   

Iowa State Bank

     4408  
  43.     

Kmart Corporation

   18-23549   

NBT Bank

     0573  
  44.     

Kmart Corporation

   18-23549   

PNC Bank

     0169  
  45.     

Kmart Corporation

   18-23549   

PNC Bank

     3334  
  46.     

Kmart Corporation

   18-23549   

PNC Bank

     9553  

 

MOR-1c.3

PAGE 9 OF 17


In re: SEARS HOLDINGS CORPORATION, et al.                   Case No.   

 18-23538 (RDD)                     

(Jointly Administered)      Reporting Period:   

 9/1/19 – 10/5/19

MOR-1c.3      Federal Tax I.D. No.   

 20-1920798

(in US Dollars)        
(Unaudited)        

BANK ACCOUNT INFORMATION

 

      #    

    

LEGAL ENTITY

   CASE
NUMBER
  

BANK

   LAST 4
DIGITS
ACCOUNT #
 
    47.     

Kmart Corporation

   18-23549   

Union Bank

     0694  
  48.     

Kmart Corporation

   18-23549   

Union Bank

     1583  
  49.     

Kmart Corporation

   18-23549   

United Missouri Bank

     0553  
  50.     

Kmart Corporation

   18-23549   

Wells Fargo

     0318  
  51.     

Sears Holdings Corporation

   18-23538   

Bank of America, N.A.

     4266  
  52.     

Sears Holdings Corporation

   18-23538   

Bank of America, N.A.

     6719  
  53.     

Sears Holdings Management Corporation

   18-23553   

Bank of America, N.A.

     5426  
  54.     

Sears Holdings Management Corporation

   18-23553   

Bank of America, N.A.

     6338  
  55.     

Sears Holdings Management Corporation

   18-23553   

Bank of America, N.A.

     6722  
  56.     

Sears Holdings Management Corporation

   18-23553   

KeyBank

     1056  
  57.     

Sears Protection Company

   18-23558   

Bank of America, N.A.

     4583  
  58.     

Sears Protection Company (Florida), LLC

   18-23569   

Bank of America, N.A.

     4596  
  59.     

Sears Protection Company (PR), Inc.

   18-23561   

Banco Popular

     1580  
  60.     

Sears Protection Company (PR), Inc.

   18-23559   

Banco Popular

     5678  
  61.     

Sears Protection Company (PR), Inc.

   18-23561   

Banco Popular

     7665  
  62.     

Sears Roebuck Acceptance Corp.

   18-23560   

Bank of America, N.A.

     0955  
  63.     

Sears Roebuck Acceptance Corp.

   18-23560   

Bank of America, N.A.

     6815  
  64.     

Sears Roebuck Acceptance Corp.

   18-23560   

Bank of America, N.A.

     9512  
  65.     

Sears, Roebuck and Co.

   18-23537   

Bank of America, N.A.

     0149  
  66.     

Sears, Roebuck and Co.

   18-23537   

Bank of America, N.A.

     0556  
  67.     

Sears, Roebuck and Co.

   18-23537   

Bank of America, N.A.

     0895  
  68.     

Sears, Roebuck and Co.

   18-23537   

Bank of America, N.A.

     0903  
  69.     

Sears, Roebuck and Co.

   18-23537   

Bank of America, N.A.

     0911  
  70.     

Sears, Roebuck and Co.

   18-23537   

Bank of America, N.A.

     0929  
  71.     

Sears, Roebuck and Co.

   18-23537   

Bank of America, N.A.

     0945  
  72.     

Sears, Roebuck and Co.

   18-23537   

Bank of America, N.A.

     0952  
  73.     

Sears, Roebuck and Co.

   18-23555   

Bank of America, N.A.

     0978  
  74.     

Sears, Roebuck and Co.

   18-23537   

Bank of America, N.A.

     1451  
  75.     

Sears, Roebuck and Co.

   18-23537   

Bank of America, N.A.

     1595  
  76.     

Sears, Roebuck and Co.

   18-23537   

Bank of America, N.A.

     3107  
  77.     

Sears, Roebuck and Co.

   18-23537   

Bank of America, N.A.

     3266  
  78.     

Sears, Roebuck and Co.

   18-23537   

Bank of America, N.A.

     4120  
  79.     

Sears, Roebuck and Co.

   18-23537   

Bank of America, N.A.

     4205  
  80.     

Sears, Roebuck and Co.

   18-23537   

Bank of America, N.A.

     4394  
  81.     

Sears, Roebuck and Co.

   18-23537   

Bank of America, N.A.

     5261  
  82.     

Sears, Roebuck and Co.

   18-23537   

Bank of America, N.A.

     5468  
  83.     

Sears, Roebuck and Co.

   18-23537   

Bank of America, N.A.

     5885  
  84.     

Sears, Roebuck and Co.

   18-23537   

Bank of America, N.A.

     6654  
  85.     

Sears, Roebuck and Co.

   18-23537   

Bank of America, N.A.

     6667  
  86.     

Sears, Roebuck and Co.

   18-23537   

Bank of America, N.A.

     7607  
  87.     

Sears, Roebuck and Co.

   18-23537   

Bank of America, N.A.

     7776  
  88.     

Sears, Roebuck and Co.

   18-23537   

Bank of America, N.A.

     7802  
  89.     

Sears, Roebuck and Co.

   18-23537   

Bank of America, N.A.

     7828  
  90.     

Sears, Roebuck and Co.

   18-23537   

Bank of America, N.A.

     7831  
  91.     

Sears, Roebuck and Co.

   18-23537   

Bank of America, N.A.

     7844  
  92.     

Sears, Roebuck and Co.

   18-23537   

Bank of America, N.A.

     7857  
  93.     

Sears, Roebuck and Co.

   18-23537   

Bank of America, N.A.

     7969  

 

MOR-1c.3

PAGE 10 OF 17


In re: SEARS HOLDINGS CORPORATION, et al.                   Case No.   

 18-23538 (RDD)                     

(Jointly Administered)      Reporting Period:   

 9/1/19 – 10/5/19

MOR-1c.3      Federal Tax I.D. No.   

 20-1920798

(in US Dollars)        
(Unaudited)        

BANK ACCOUNT INFORMATION

 

      #    

    

LEGAL ENTITY

   CASE
NUMBER
  

BANK

   LAST 4
DIGITS
ACCOUNT #
 
  94.     

Sears, Roebuck and Co.

   18-23537   

Bank of America, N.A.

     7972  
  95.     

Sears, Roebuck and Co.

   18-23537   

Bank of America, N.A.

     8855  
  96.     

Sears, Roebuck and Co.

   18-23537   

Bank of America, N.A.

     8868  
  97.     

Sears, Roebuck and Co.

   18-23537   

Bank of America, N.A.

     8871  
  98.     

Sears, Roebuck and Co.

   18-23537   

Bank of America, N.A.

     8884  
  99.     

Sears, Roebuck and Co.

   18-23537   

Bank of America, N.A.

     8960  
  100.     

Sears, Roebuck and Co.

   18-23537   

Bank of America, N.A.

     8973  
  101.     

Sears, Roebuck and Co.

   18-23537   

Bank of America, N.A.

     8981  
  102.     

Sears, Roebuck and Co.

   18-23537   

Bank of America, N.A.

     8986  
  103.     

Sears, Roebuck and Co.

   18-23537   

Bank of America, N.A.

     8994  
  104.     

Sears, Roebuck and Co.

   18-23537   

Bank of America, N.A.

     9415  
  105.     

Sears, Roebuck and Co.

   18-23537   

Bank of America, N.A.

     9457  
  106.     

Sears, Roebuck and Co.

   18-23537   

Bank of America, N.A.

     9939  
  107.     

Sears, Roebuck and Co.

   18-23537   

Bank Of Oklahoma

     1048  
  108.     

Sears, Roebuck and Co.

   18-23537   

Capital One Bank

     4557  
  109.     

Sears, Roebuck and Co.

   18-23537   

Capital One Bank

     9999  
  110.     

Sears, Roebuck and Co.

   18-23537   

Citizens Bank

     3397  
  111.     

Sears, Roebuck and Co.

   18-23537   

First Hawaiian Bank

     8911  
  112.     

Sears, Roebuck and Co.

   18-23537   

First Tennessee

     0003  
  113.     

Sears, Roebuck and Co.

   18-23537   

KeyBank

     4236  
  114.     

Sears, Roebuck and Co.

   18-23537   

PNC Bank

     2515  
  115.     

Sears, Roebuck and Co.

   18-23537   

PNC Bank

     3342  
  116.     

Sears, Roebuck and Co.

   18-23537   

PNC Bank

     3424  
  117.     

Sears, Roebuck and Co.

   18-23537   

Regions Bank

     5433  
  118.     

Sears, Roebuck and Co.

   18-23537   

Union Bank

     0686  
  119.     

Sears, Roebuck and Co.

   18-23537   

Union Bank

     4871  
  120.     

Sears, Roebuck and Co.

   18-23537   

Wells Fargo

     2397  
  121.     

StarWest, LLC

   18-23579   

Bank of America, N.A.

     9396  

 

MOR-1c.3

PAGE 11 OF 17


In re: SEARS HOLDINGS CORPORATION, et al.                   Case No.   

 18-23538 (RDD)                     

(Jointly Administered)      Reporting Period:   

 9/1/19 – 10/5/19

MOR-1d      Federal Tax I.D. No.   

 20-1920798

(in US Dollars)        
(Unaudited)        

SCHEDULE OF RETAINED RESTRUCTURING PROFESSIONAL FEE DISBURSEMENTS & US TRUSTEE FEES

 

PROFESSIONAL

  

AMOUNT PAID
DURING THE
REPORTING PERIOD

    

CUMULATIVE (a)

 
Estate Professionals      

Weil, Gotshal & Manges LLP

     —        $ 53,966,671  

M-III Advisory Partners LP

     —          13,958,280  

Wachtell, Lipton, Rosen & Katz

     —          886,018  

Lazard Freres & Co. LLC

     —          21,410,423  

Prime Clerk

     —          14,710,974  

Deloitte Transactions and Business Analytics LLP

     —          6,674,532  

Deloitte Audit

     —          2,443,114  

Deloitte Tax

     —          3,794,131  

A&G Realty Partners LLC

     —          200,000  

Jones Lang Lasalle Americas, Inc.

     —          2,178,017  

McAndrews Held & Malloy LTD

     —          647,257  

Total Estate Professionals

     —          120,869,416  
Restructuring Committee Professionals      

Paul Weiss Rifkind Wharton & Garrison LLP

     —          19,806,011  

Young Conaway Stargatt & Taylor, LLP

     —          292,146  

Stout Risius Ross

     —          195,775  

Evercore

     —          1,257,095  

Alvarez & Marsal North America, LLC

     —          4,567,897  

Total Restructuring Committee Professionals

     —          26,118,925  
Creditor Committee Professionals      

Akin Gump Strauss Hauer & Feld LLP

     —          25,957,310  

Houlihan Lokey

     —          9,261,354  

Herrick, Feinstein

     —          323,858  

FTI Consulting

     —          8,068,337  

Total Creditor Committee Professionals

     —          43,610,860  

Total Retained Professionals

     —          190,599,202  

US Trustee Quarterly Fees

     —          6,189,739  

Total Professional and US Trustee Fees

     —        $ 196,788,940  

Footnote:

(a)

Represents payments made since the Commencement Date.

 

MOR-1d

PAGE 12 OF 17


In re: SEARS HOLDINGS CORPORATION, et al.                   Case No.   

 18-23538 (RDD)                     

(Jointly Administered)      Reporting Period:   

 9/1/19 – 10/5/19

MOR-2      Federal Tax I.D. No.   

 20-1920798

(Unaudited)        

STATEMENT OF OPERATIONS

 

Condensed & Consolidated Income Statement (a)    Reporting
Period Ended
October 5, 2019
 
     (in millions)  
REVENUES   

Services and other

     —    
  

 

 

 

Total revenues

     —    
COSTS AND EXPENSES   

Cost of sales, buying and occupancy - merchandise sales

     —    
  

 

 

 

Total cost of sales, buying and occupancy

     —    

Selling and administrative

     2  

Gain on sales of assets

     (5
  

 

 

 

Total costs and expenses

     (3
  

 

 

 

Operating income (loss)

     3  

Reorganization, net

     (6

Interest and investment income (loss)

     2  
  

 

 

 

Income (loss) before income taxes

     (1

Income tax (expense) benefit

     —    
  

 

 

 

NET INCOME

   ($ 1
  

 

 

 

Footnote:

(a)

Numbers may not foot due to rounding

 

MOR-2

PAGE 13 OF 17


In re: SEARS HOLDINGS CORPORATION, et al.                   Case No.   

 18-23538 (RDD)                     

(Jointly Administered)      Reporting Period:   

 9/1/19 – 10/5/19

MOR-3      Federal Tax I.D. No.   

 20-1920798

(Unaudited)        

BALANCE SHEET

 

Condensed & Consolidated Balance Sheet (a)(b)    As of
October 5, 2019
 
     (in millions)  
ASSETS   

Current assets

  

Cash and Cash Equivalents

   $ 8  

Restricted Cash

     115  

Accounts Receivable

     64  

Prepaid Expenses and Other Current Assets

     15  
  

 

 

 

Total Current Assets

     202  

Property and Equipment (net of accumulated depreciation and amortization)

     9  

Other Assets

     16  
  

 

 

 

TOTAL ASSETS

   $ 227  
  

 

 

 
LIABILITIES   

Current Liabilities

  

Merchandise Payables

   $ 38  

Other Current Liabilities

     28  
  

 

 

 

Total Current Liabilities (Not Subject to Compromise)

     66  

Liabilities Subject to Compromise

     6,492  

Commitments and Contingencies

     —    
DEFICIT   

Total Deficit

     (6,331
  

 

 

 

TOTAL LIABILITIES AND DEFICIT

   $ 227  
  

 

 

 

Footnote:

(a)

Numbers may not foot due to rounding

(b)

The Debtors continue to evaluate their assets and liabilities, and any adjustments will be reflected in next month’s MOR.

 

MOR-3

PAGE 14 OF 17


In re: SEARS HOLDINGS CORPORATION, et al.                   Case No.   

 18-23538 (RDD)                     

Debtors      Reporting Period:   

 9/1/19 – 10/5/19

MOR-4a, 4b, 4c      Federal Tax I.D. No.   

 20-1920798

(in US Dollars)        

MOR-4a: STATUS OF POST-PETITION TAXES

Subject: Monthly Operating Report Attestation Regarding Post-Petition Taxes

The Debtors, Sears Holdings Corporation., et al., hereby submit this attestation regarding post-petition taxes.

All post-petition taxes for the Debtors, which are not subject to dispute or reconciliation, are current. There are no material post-petition tax disputes or reconciliations.

 

/s/ Mohsin Y. Meghji
Mohsin Y. Meghji

Chief Restructuring Officer

Sears Holdings Corporation, et al.

MOR-4b: SUMMARY OF UNPAID POST-PETITION VENDOR PAYABLES

 

     NUMBER OF DAYS PAST DUE  

DESCRIPTION

  

CURRENT

    

1-30 DAYS

    

31-60 DAYS

    

61-90 DAYS

    

91+ DAYS

    

TOTAL

 

Combined (a)

     —          —          —          —        $ 37,969,813      $ 37,969,813  

Footnote:

(a)

The Debtors and the Buyer are currently disputing which party is responsible for certain post-petition payables.

MOR-4c: ACCOUNTS RECEIVABLE AGING

 

DESCRIPTION

  

CURRENT

    

1-30 DAYS

    

31-60 DAYS

    

61-90 DAYS

    

91+ DAYS

    

TOTAL

 

Accounts Receivable, Net (a)

     —          —          —          —        $ 64,057,114      $ 64,057,114  

Footnote:

(a)

The Debtors and the Buyer are currently disputing cash and cash proceeds received by the Buyer that the Debtors believe should be transferred to the Debtors’ accounts.

 

MOR-4a, 4b, 4c

PAGE 15 OF 17


In re: SEARS HOLDINGS CORPORATION, et al.                   Case No.   

 18-23538 (RDD)                     

Debtors      Reporting Period:   

 9/1/19 – 10/5/19

MOR-5      Federal Tax I.D. No.   

 20-1920798

(in US Dollars)        

PAYMENTS TO INSIDERS (a)

INSIDER PAYMENT SUMMARY (FOR THIS PERIOD ONLY)

 

DESCRIPTION

  

AMOUNT

 

Payments to members of the Restructuring Committee

   $ 100,000  

Footnote(s):

(a)

The payments to insiders include payments by the Debtors to individuals who are currently directors of the Board of Sears Holdings Corporation.

Persons included as “insiders” have been included for informational purposes only. The Debtors do not concede or take any position with respect to: (i) such person’s influence over the control of the Debtors; (ii) the management responsibilities or functions of such individual; (iii) the decision-making or corporate authority of such individual; or (iv) whether such individual could successfully argue that he or she is not an “insider” under applicable law, including, without limitation, the federal securities laws or with respect to any theories of liability or for any other purpose. Further, the inclusion of a party as an “insider” is not an acknowledgement or concession that such party is an “insider” under applicable bankruptcy law.

 

MOR-5

PAGE 16 OF 17


In re: SEARS HOLDINGS CORPORATION, et al.                   Case No.   

 18-23538 (RDD)                     

Debtors      Reporting Period:   

 9/1/19 – 10/5/19

     Federal Tax I.D. No.   

 20-1920798

MOR 6: DEBTOR QUESTIONNAIRE

 

Must be completed each month. If the answer to any of the questions is “Yes”,
provide a detailed explanation of each item. Attach additional sheets if
necessary.

  

    Yes    

  

    No    

  

Comments

  1.      Have any assets been sold or transferred outside the normal course of business this reporting period?       X   
  2.      Have any funds been disbursed from any account other than a debtor in possession account this reporting period?       X   
  3.      Is the Debtor delinquent in the timely filing of any post-petition tax returns?       X   
  4.      Are workers compensation, general liability or other necessary insurance coverages expired or cancelled, or has the debtor received notice of expiration or cancellation of such policies?       X   
  5.      Is the Debtor delinquent in paying any insurance premium payment?       X   
  6.      Have any payments been made on pre-petition liabilities this reporting period?    X       The Buyer made payments on pre-petition liabilities as part of certain Cure Payments.
  7.      Are any post petition receivables (accounts, notes or loans) due from related parties?       X   
  8.      Are any post petition payroll taxes past due?       X   
  9.      Are any post petition State or Federal income taxes past due?       X   
  10.      Are any post petition real estate taxes past due?       X   
  11.      Are any other post petition taxes past due?       X   
  12.      Have any pre-petition taxes been paid during this reporting period?    X       $27,727 was paid for W2C filings.
  13.      Are any amounts owed to post petition creditors delinquent?    X       As of 10/5/19, there are approximately $38 million in delinquent invoices payable to post petition creditors. This is due to an ongoing dispute between the Debtors’ estates and Buyer as to which entity will pay the creditors.
  14.      Are any wage payments past due?       X   
  15.      Have any post petition loans been received by the Debtor from any party?       X   
  16.      Is the Debtor delinquent in paying any U.S. Trustee fees?       X   
  17.      Is the Debtor delinquent with any court ordered payments to attorneys or other professionals?    X       There are Ordinary Course Professionals that are owed postpetition amounts. This is due to an ongoing dispute between the Debtors’ estates and Buyer as to which entity will pay these professionals.
  18.      Have the owners or shareholders received any compensation outside of the normal course of business?       X   

 

MOR-6

PAGE 17 OF 17

Exhibit 99.2

 

In re: Sears Holdings Corporation, et al.    Case No. 18-23538 (RDD)
Debtors    Reporting Period: October 6 - November 2, 2019
   Federal Tax I.D. # 20-1920798

GLOBAL NOTES AND STATEMENTS OF LIMITATIONS

AND DISCLAIMERS REGARDING THE DEBTORS’ MONTHLY OPERATING REPORTS

On October 15, 2018 (the “Petition Date”), Sears Holdings Corporation and 49 of its debtor affiliates, as debtors and debtors in possession in the above-captioned chapter 11 cases (collectively, the “Debtors,” and together with the Debtors’ non-debtor affiliates, the “Company”)1 filed voluntary petitions for relief under chapter 11 of title 11 of the United States Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the Southern District of New York (the “Bankruptcy Court”). In addition, Debtors SHC Licensed Business LLC, SHC Promotions LLC and SRe Holding Corporation filed their voluntary petitions for relief on October 18, 2018, October 22, 2018 and January 7, 2019, respectively. The Debtors’ chapter 11 cases are being jointly administered for procedural purposes only pursuant to Rule 1015(b) of the Federal Rules of Bankruptcy Procedure (the “Bankruptcy Rules”) under the caption Sears Holdings Corporation., et al., Case No. 18-23538 (RDD) (S.D.N.Y.), pursuant to an order entered by the Bankruptcy Court on October 15, 2018 [ECF No. 118]. On October 24, 2018, the United States Trustee for Region 2 (the “U.S. Trustee”) appointed an official committee of unsecured creditors pursuant to section 1102(a) of the Bankruptcy Code (the “Creditors Committee”) [ECF No. 276]. The Debtors continue to operate their business and manage their properties as debtors in possession pursuant to sections 1107(a) and 1108 of the Bankruptcy Code. On February 8, 2019, the Bankruptcy Court entered the Order (I) Approving the Asset Purchase Agreement Among Sellers and Buyer, (II) Authorizing the Sale of Certain of the Debtors Assets Free and Clear of Liens, Claims, Interests and Encumbrances, (III) Authorizing the Assumption and Assignment of Certain Executory Contracts, and Leases in Connection Therewith and (IV) Granting Related Relief [ECF No. 2507] (the “Sale Order”). The Sale Transaction (as defined in the Sale Order) with Transform Holdco LLC (the “Buyer”) closed on February 11, 2019 (the “Closing”). On October 15, 2019, the Bankruptcy Court entered the Order (I) Confirming Modified Second

 

 

1 

The Debtors in these chapter 11 cases, along with the last four digits of each Debtor’s federal tax identification number, are as follows: Sears Holdings Corporation (0798); Kmart Holding Corporation (3116); Kmart Operations LLC (6546); Sears Operations LLC (4331); Sears, Roebuck and Co. (0680); ServiceLive Inc. (6774); SHC Licensed Business LLC (3718); A&E Factory Service, LLC (6695); A&E Home Delivery, LLC (0205); A&E Lawn & Garden, LLC (5028); A&E Signature Service, LLC (0204); FBA Holdings Inc. (6537); Innovel Solutions, Inc. (7180); Kmart Corporation (9500); MaxServ, Inc. (7626); Private Brands, Ltd. (4022); Sears Development Co. (6028); Sears Holdings Management Corporation (2148); Sears Home & Business Franchises, Inc. (6742); Sears Home Improvement Products, Inc. (8591); Sears Insurance Services, L.L.C. (7182); Sears Procurement Services, Inc. (2859); Sears Protection Company (1250); Sears Protection Company (PR) Inc. (4861); Sears Roebuck Acceptance Corp. (0535); SR—Rover de Puerto Rico, LLC (f/k/a Sears, Roebuck de Puerto Rico, Inc.) (3626); SYW Relay LLC (1870); Wally Labs LLC (None); SHC Promotions LLC (9626); Big Beaver of Florida Development, LLC (None); California Builder Appliances, Inc. (6327); Florida Builder Appliances, Inc. (9133); KBL Holding Inc. (1295); KLC, Inc. (0839); Kmart of Michigan, Inc. (1696); Kmart of Washington LLC (8898); Kmart Stores of Illinois LLC (8897); Kmart Stores of Texas LLC (8915); MyGofer LLC (5531); Rover Brands Business Unit, LLC (f/k/a Sears Brands Business Unit Corporation) (4658); Sears Holdings Publishing Company, LLC. (5554); Sears Protection Company (Florida), L.L.C. (4239); SHC Desert Springs, LLC (None); SOE, Inc. (9616); StarWest, LLC (5379); STI Merchandising, Inc. (0188); Troy Coolidge No. 13, LLC (None); BlueLight.com, Inc. (7034); Sears Brands, L.L.C. (4664); Sears Buying Services, Inc. (6533); Kmart.com LLC (9022); Sears Brands Management Corporation (5365); and SRe Holding Corporation (4816). The location of the Debtors’ corporate headquarters is 3333 Beverly Road, Hoffman Estates, Illinois 60179.


In re: Sears Holdings Corporation, et al.    Case No. 18-23538 (RDD)
Debtors    Reporting Period: October 6 - November 2, 2019
   Federal Tax I.D. # 20-1920798

 

Amended Joint Chapter 11 Plan of Sears Holdings Corporation and Its Affiliated Debtors and (II) Granting Related Relief [ECF No. 5370].

The following notes, statements and limitations should be referred to, and referenced in connection with, any review of the MOR.

 

  1.

Basis of Presentation. The Debtors are filing their consolidated monthly operating report (the “MOR”) solely for purposes of complying with the monthly operating requirements applicable in the Debtors’ chapter 11 cases. The MOR is in a format acceptable to the U.S. Trustee for the Southern District of New York (the “U.S. Trustee”). The MOR should not be relied upon by any persons for information relating to current or future financial conditions, events, or performance of any of the Debtors or their affiliates.

In preparing the MOR, the Debtors relied on financial data derived from their books and records that was available at the time of preparation. Subsequent information or discovery may result in material changes to the MOR and errors or omissions may exist. Notwithstanding any such discovery, new information, or errors or omissions, the Debtors do not undertake any obligation or commitment to update the MOR.

This MOR has not been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and does not include all of the information and footnotes required by U.S. GAAP. Therefore, there can be no assurance that the consolidated financial information presented herein is complete, and readers are strongly cautioned not to place undue reliance on the MOR.

The information furnished in this report includes primarily normal recurring adjustments but does not include all the adjustments that would typically be made for the quarterly and annual consolidated financial statements to be in accordance with U.S. GAAP.

Furthermore, the monthly financial information contained herein has not been subjected to the same level of accounting review and testing that the Debtors apply in the preparation of their quarterly and annual consolidated financial information in accordance with U.S. GAAP. Accordingly, upon the application of such procedures, the Debtors believe that the financial information may be subject to change, and these changes could be material.

In future periods, any changes to prior period balances will be reflected in the current month’s MOR.

The results of operations contained herein are not necessarily indicative of results that may be expected from any other period or for the full year and may not necessarily reflect the consolidated results of operations and financial position of the Debtors in the future.

 

  2.

Reporting Period. Unless otherwise noted herein, the MOR generally reflects the Debtors’ books and records and financial activity occurring during the applicable reporting period. Except as otherwise noted, no adjustments have been made for activity occurring after the close of the reporting period.


In re: Sears Holdings Corporation, et al.    Case No. 18-23538 (RDD)
Debtors    Reporting Period: October 6 - November 2, 2019
   Federal Tax I.D. # 20-1920798

 

  3.

Consolidated Entity Accounts Payable and Disbursements Systems. Cash was received and disbursed by the Debtors as described in the Motion of Debtors for Authority to (I) Continue Using Existing Cash Management System, Bank Accounts, and Business Forms, (II) Implement Ordinary Course Changes to Cash Management System, (III) Continue Intercompany Transactions, and (IV) Provide Administrative Expense Priority for Post-Petition Intercompany Claims and Related Relief (the “Cash Management Motion”) to the extent approved in the order granting the Cash Management Motion on a final basis (the “Final Cash Management Order”) [ECF No. 1394].

On the Closing, in accordance with the terms of the Asset Purchase Agreement (as defined in the Sale Order), all of the Debtors’ bank accounts, other than those accounts listed on the annexed MOR-1c.1 schedule titled “Bank Account Information,” were transferred to the Buyer (as defined in the Sale Order), not including any cash in such transferred bank accounts.

 

  4.

Accuracy. The financial information disclosed herein was not prepared in accordance with federal or state securities laws or other applicable non-bankruptcy law or in lieu of complying with any periodic reporting requirements thereunder. Persons and entities trading in or otherwise purchasing, selling, or transferring the claims against or equity interests in the Debtors should evaluate this financial information in light of the purposes for which it was prepared. The Debtors are not liable for and undertake no responsibility to indicate variations from securities laws or for any evaluations of the Debtors based on this financial information or any other information.

 

  5.

Debtor-in-Possession Financing. On November 30, 2018, the Debtors received authorization from the Bankruptcy Court to access their $1,830,378,380 Debtor-in-Possession ABL Facility on a final basis pursuant to the Final Order (I) Authorizing the Debtors to (A) Obtain Post-Petition Financing, (B) Grant Senior Secured Priming Liens and Superpriority Administrative Expense Claims, and (C) Utilize Cash Collateral; (II) Granting Adequate Protection to the Pre-Petition Secured Parties; (III) Modifying the Automatic Stay; and (IV) Granting Related Relief [ECF No. 955] (the “Final DIP ABL Order”), and on December 28, 2018 the Debtors received authorization to access on a final basis their $350 million Junior Debtor-in-Possession Facility pursuant to the Final Junior DIP Order (I) Authorizing the Debtors to (A) Obtain Post-Petition Financing and (B) Grant Secured Priming Liens and Superpriority Administrative Expense Claim; (II) Modifying the Automatic Stay; and (IV) Granting Related Relief [ECF No. 1436] (the “Final Junior DIP Order,” and together with the Final ABL DIP Order, the “DIP Orders”) and the documents governing the Debtor-in-Possession financing thereunder (the “DIP Loan Documents”). Please see the DIP Orders for additional detail.

Pursuant to the Sale Order, on the Closing, prepetition secured debt under the Final DIP ABL Order was repaid, and secured obligations under the Final Junior DIP Order were rolled into new financing of the Buyer and otherwise discharged as against the Debtors.


In re: Sears Holdings Corporation, et al.    Case No. 18-23538 (RDD)
Debtors    Reporting Period: October 6 - November 2, 2019
   Federal Tax I.D. # 20-1920798

 

  6.

Payment of Pre-Petition Claims Pursuant to Court Orders. Within the first two days of the Debtors’ chapter 11 cases, the Bankruptcy Court entered orders (the “First Day Orders”) authorizing, but not directing, the Debtors to pay, on an interim basis, certain pre-petition (a) claims of critical vendors, shippers, warehousemen, other lien claimants, and foreign creditors; (b) taxes; (c) employee wages, salaries and other compensation and benefits; and (d) obligations related to the use of the Debtors’ cash management system, among other things. On November 16, 2018, the Bankruptcy Court approved the relief requested in connection with the First Day Orders on a final basis, except for the Final Cash Management Order, which was entered on December 21, 2018. To the extent any payments were made on account of such claims or obligations following the commencement of these chapter 11 cases pursuant to the authority granted to the Debtors by the Bankruptcy Court under the First Day Orders, such payments have been included in the MOR unless otherwise noted.

As stated above, pursuant to the Sale Order, on the Closing, prepetition secured debt under the Final DIP ABL Order was repaid, and secured obligations under the Final Junior DIP Order were rolled into new financing of the Buyer and otherwise discharged as against the Debtors.

 

  7.

Reservation of Rights. The Debtors reserve all rights to amend or supplement the MOR in all respects, as may be necessary or appropriate. Nothing contained in this MOR shall constitute a waiver of any of the Debtors’ rights or an admission with respect to their chapter 11 cases.

 

  8.

Specific MOR Disclosures.

 

  a.

Notes to MOR-la: The net cash receipts represent cash received by each Debtor assigned bank account and excludes the “flow through” disbursements used to pay the Buyer’s accounts payable and payroll.

 

  b.

Notes to MOR-1b: Certain Debtors make disbursements on behalf of other Debtors. The net cash disbursements represent cash disbursed by the applicable Debtor excluding disbursements made on behalf of other Debtors, which are reflected on the accounts of the Debtors on whose behalf they are made. The total disbursements (for quarterly fee purposes) represent the disbursements made on behalf of each affiliated Debtor and excludes the “flow through” disbursements used to pay the Buyer’s accounts payable and payroll.

 

  c.

Notes to MOR-1c.1 & 1c.2: All amounts listed are the bank balances as of the dates in the footnotes on MOR-1c.2. The Debtors have, on a timely basis, performed bank account reconciliations in the ordinary course of business. Due to the level of detailed records, copies of the bank account statements and reconciliations are available for inspection only upon request.


In re: Sears Holdings Corporation, et al.    Case No. 18-23538 (RDD)
Debtors    Reporting Period: October 6 - November 2, 2019
   Federal Tax I.D. # 20-1920798

 

  d.

Notes to MOR-1d: This MOR lists the professional fees paid during this reporting period to Restructuring Professionals retained by the Debtors in these chapter 11 cases.

 

  e.

Notes to MOR-2 & MOR-3: The amounts currently classified as liabilities subject to compromise may be subject to future adjustments depending on Bankruptcy Court actions, payments pursuant to Bankruptcy Court orders, further developments with respect to, among other things, the reconciliation and adjudication of claims, determinations of the secured status of certain claims, the value of any collateral securing such claims, rejection of executory contracts, or other events. The following balance sheet accounts have been reclassified to liabilities subject to compromise (“LSTC”) for this reporting period: short-term borrowings, current portion of long-term debt, intercompany payables, certain other current liabilities, long-term debt, unearned revenues and other long-term liabilities. These LSTC are offset by investment in non-debtor subsidiaries and with the following recorded in prepaid expenses and other current assets and other long-term assets: deferred tax credits, tax credits, and deferred acquisition costs related to new protection service agreements. Intercompany receivables and payables between the Debtors and non-debtor entities net to zero in the Debtors’ consolidated balance sheet. The Debtors continue to evaluate their assets and liabilities, and any adjustments will be reflected in next month’s MOR.

 

  f.

Notes to MOR-4a: For status of post-petition tax payments, see disclosures as noted on MOR-4a. Due to the size and detail of such records, (i) copies of IRS Form 6123 or payment receipts; (ii) copies of tax returns filed during the reporting period; and (iii) a taxes aging schedule will be made available upon reasonable request in writing to bankruptcy counsel for the Debtors.

 

  g.

Notes to MOR-4b: As of the date of this report, there is an ongoing dispute between the Debtors and the Buyer regarding certain post-petition payables.

 

  h.

Notes to MOR-4c: As of this reporting period, there was an ongoing dispute between the Debtors and the Buyer regarding certain cash and cash proceeds received by the Buyer that the Debtors believe should be transferred to the Debtors’ accounts. The Debtors have recorded a $100 million receivable due from the Buyer for the amounts in dispute, including the post-petition payables referenced in paragraph (g) of these Notes. This receivable has since been reduced for amounts received from the Buyer.


UNITED STATES BANKRUPTCY COURT

SOUTHERN DISTRICT OF NEW YORK

 

In re: SEARS HOLDINGS CORPORATION, et al.                   Case No.   

 18-23538 (RDD)                 

Debtors      Reporting Period:   

 10/6/19 – 11/2/19

     Federal Tax I.D. No.   

 20-1920798

CORPORATE MONTHLY OPERATING REPORT

 

REQUIRED DOCUMENTS

   Form No.     

Document
Attached

   Explanation Attached  
Schedule of Cash Receipts      MOR-1a      X   
Schedule of Cash Disbursements      MOR-1b & 1b.1      X   
Bank Reconciliation (or copies of debtor’s bank reconciliations)     
MOR-1c.1 & 1c.2 &
1c.3
 
 
   X   

Copies of bank statements

           Available Upon Request  

Cash disbursements journals

           Available Upon Request  
Schedule of Retained Restructuring Professionals Fees      MOR-1d      X   
Statement of Operations      MOR-2      X   
Balance Sheet      MOR-3      X   
Status of Post-petition Taxes      MOR-4a      X   

Copies of IRS Form 6123 or payment receipt

           Available Upon Request  

Copies of tax returns filed during reporting period

           Available Upon Request  
Summary of Unpaid Post-petition Debts      MOR-4b      X   

Listing of Aged Accounts Payable

           Available Upon Request  
Accounts Receivable Reconciliation and Aging      MOR-4c      X   
Payments to Insiders      MOR-5      X   
Debtor Questionnaire      MOR-6      X   

I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and the attached documents are true and correct to the best of my knowledge and belief.

 

/s/ Mohsin Y. Meghji    

 

  1/17/20  

 

Signature of Authorized Individual

  Date  
Mohsin Y. Meghji    

 

  Chief Restructuring Officer

Printed Name of Authorized Individual

  Title of Authorized Individual


In re: SEARS HOLDINGS CORPORATION, et al.                   Case No.   

 18-23538 (RDD)                     

(Jointly Administered)      Reporting Period:   

 10/6/19 – 11/2/19

     Federal Tax I.D. No.   

 20-1920798

NOTES TO MONTHLY OPERATING REPORT

The Monthly Operating Report (“MOR”) includes activity for the following Debtors:

 

    #    

  

DEBTOR ENTITY NAME

   FILING
DATE
   BANKRUPTCY
CASE NUMBER
   COMPLETE EIN OR
OTHER TAXPAYER I.D.
1.    SEARS, ROEBUCK AND CO.    10/15/18    18-23537    36-1750680
2.    SEARS HOLDINGS CORPORATION    10/15/18    18-23538    20-1920798
3.    KMART HOLDING CORPORATION    10/15/18    18-23539    32-0073116
4.    KMART OPERATIONS LLC    10/15/18    18-23540    32-0456546
5.    SEARS OPERATIONS LLC    10/15/18    18-23541    35-2524331
6.    SERVICELIVE, INC.    10/15/18    18-23542    36-4616774
7.    A&E FACTORY SERVICE, LLC    10/15/18    18-23543    36-4486695
8.    A&E HOME DELIVERY, LLC    10/15/18    18-23544    37-1500205
9.    A&E LAWN & GARDEN, LLC    10/15/18    18-23545    13-4275028
10.    A&E SIGNATURE SERVICE, LLC    10/15/18    18-23546    37-1500204
11.    FBA HOLDINGS INC.    10/15/18    18-23547    36-4186537
12.    INNOVEL SOLUTIONS, INC.    10/15/18    18-23548    36-1857180
13.    KMART CORPORATION    10/15/18    18-23549    38-0729500
14.    MAXSERV, INC.    10/15/18    18-23550    74-2707626
15.    PRIVATE BRANDS, LTD.    10/15/18    18-23551    55-0544022
16.    SEARS DEVELOPMENT CO.    10/15/18    18-23552    36-2476028
17.    SEARS HOLDINGS MANAGEMENT CORPORATION    10/15/18    18-23553    20-3592148
18.    SEARS HOME & BUSINESS FRANCHISES, INC.    10/15/18    18-23554    98-0126742
19.    SEARS HOME IMPROVEMENT PRODUCTS, INC.    10/15/18    18-23555    25-1698591
20.    SEARS INSURANCE SERVICES, L.L.C.    10/15/18    18-23556    36-4287182
21.    SEARS PROCUREMENT SERVICES, INC.    10/15/18    18-23557    30-0092859
22.    SEARS PROTECTION COMPANY    10/15/18    18-23558    36-4471250
23.    SEARS PROTECTION COMPANY (PR) INC.    10/15/18    18-23559    66-0704861
24.    SEARS ROEBUCK ACCEPTANCE CORP.    10/15/18    18-23560    51-0080535
25.    SR-ROVER DE PUERTO RICO, LLC (f/k/a SEARS, ROEBUCK DE PUERTO RICO, INC.)    10/15/18    18-23561    66-0233626
26.    SYW RELAY LLC    10/15/18    18-23562    35-2561870
27.    WALLY LABS LLC    10/15/18    18-23563    None
28.    BIG BEAVER OF FLORIDA DEVELOPMENT, LLC    10/15/18    18-23564    None
29.    CALIFORNIA BUILDER APPLIANCES, INC.    10/15/18    18-23565    68-0406327
30.    FLORIDA BUILDER APPLIANCES, INC.    10/15/18    18-23566    36-3619133
31.    KBL HOLDING INC.    10/15/18    18-23567    26-0031295
32.    KLC, INC.    10/15/18    18-23568    75-2490839
33.    SEARS PROTECTION COMPANY (FLORIDA), LLC    10/15/18    18-23569    20-0224239
34.    KMART OF WASHINGTON LLC    10/15/18    18-23570    61-1448898
35.    KMART STORES OF ILLINOIS LLC    10/15/18    18-23571    61-1448897
36.    KMART STORES OF TEXAS LLC    10/15/18    18-23572    61-1448915
37.    MYGOFER LLC    10/15/18    18-23573    26-4005531
38.    ROVER BRANDS BUSINESS UNIT, LLC (f/k/a Sears Brands Business Unit Corporation)    10/15/18    18-23574    42-1564658
39.    SEARS HOLDINGS PUBLISHING COMPANY, LLC    10/15/18    18-23575    26-0075554
40.    KMART OF MICHIGAN, INC.    10/15/18    18-23576    38-3551696
41.    SHC DESERT SPRINGS, LLC    10/15/18    18-23577    None
42.    SOE, INC.    10/15/18    18-23578    83-0399616
43.    STARWEST, LLC    10/15/18    18-23579    37-1495379
44.    STI MERCHANDISING, INC.    10/15/18    18-23580    38-2760188
45.    TROY COOLIDGE NO. 13, LLC    10/15/18    18-23581    None
46.    BLUELIGHT.COM, INC.    10/15/18    18-23582    77-0527034
47.    SEARS BRANDS, L.L.C.    10/15/18    18-23583    42-1564664
48.    SEARS BUYING SERVICES, INC.    10/15/18    18-23584    36-3256533
49.    KMART.COM LLC    10/15/18    18-23585    77-0529022
50.    SEARS BRANDS MANAGEMENT CORPORATION    10/15/18    18-23586    36-2555365
51.    SHC LICENSED BUSINESS LLC    10/18/18    18-23616    37-1783718
52.    SHC PROMOTIONS LLC    10/22/18    18-23630    26-4209626
53.    SRE HOLDING CORPORATION    1/7/19    19-22031    46-4344816

 

Notes to MOR

PAGE 2 OF 17


In re: SEARS HOLDINGS CORPORATION, et al.                   Case No.   

 18-23538 (RDD)                     

(Jointly Administered)      Reporting Period:   

 10/6/19  – 11/2/19

MOR-1a      Federal Tax I.D. No.   

 20-1920798

(in US Dollars)        
(Unaudited)        

SCHEDULE OF RECEIPTS

 

    #    

  

DEBTOR ENTITY NAME

   BANKRUPTCY
CASE NUMBER
   NET CASH
RECEIPTS (a)
 
1.    SEARS, ROEBUCK AND CO.    18-23537    $ 5,859,180  
2.    SEARS HOLDINGS CORPORATION    18-23538      —    
3.    KMART HOLDING CORPORATION    18-23539      —    
4.    KMART OPERATIONS LLC    18-23540      —    
5.    SEARS OPERATIONS LLC    18-23541      —    
6.    SERVICELIVE, INC.    18-23542      —    
7.    A&E FACTORY SERVICE, LLC    18-23543      —    
8.    A&E HOME DELIVERY, LLC    18-23544      —    
9.    A&E LAWN & GARDEN, LLC    18-23545      —    
10.    A&E SIGNATURE SERVICE, LLC    18-23546      —    
11.    FBA HOLDINGS INC.    18-23547      —    
12.    INNOVEL SOLUTIONS, INC.    18-23548      —    
13.    KMART CORPORATION    18-23549      —    
14.    MAXSERV, INC.    18-23550      —    
15.    PRIVATE BRANDS, LTD.    18-23551      —    
16.    SEARS DEVELOPMENT CO.    18-23552      —    
17.    SEARS HOLDINGS MANAGEMENT CORPORATION    18-23553      —    
18.    SEARS HOME & BUSINESS FRANCHISES, INC.    18-23554      —    
19.    SEARS HOME IMPROVEMENT PRODUCTS, INC    18-23555      —    
20.    SEARS INSURANCE SERVICES, L.L.C.    18-23556      —    
21.    SEARS PROCUREMENT SERVICES, INC.    18-23557      —    
22.    SEARS PROTECTION COMPANY    18-23558      —    
23.    SEARS PROTECTION COMPANY (PR) INC.    18-23559      —    
24.    SEARS ROEBUCK ACCEPTANCE CORP.    18-23560      —    
25.    SR-ROVER DE PUERTO RICO, LLC (f/k/a SEARS, ROEBUCK DE PUERTO RICO, INC.)    18-23561      —    
26.    SYW RELAY LLC    18-23562      —    
27.    WALLY LABS LLC    18-23563      —    
28.    BIG BEAVER OF FLORIDA DEVELOPMENT, LLC    18-23564      —    
29.    CALIFORNIA BUILDER APPLIANCES, INC.    18-23565      —    
30.    FLORIDA BUILDER APPLIANCES, INC.    18-23566      —    
31.    KBL HOLDING INC.    18-23567      —    
32.    KLC, INC.    18-23568      —    
33.    SEARS PROTECTION COMPANY (FLORIDA), LLC    18-23569      —    
34.    KMART OF WASHINGTON LLC    18-23570      —    
35.    KMART STORES OF ILLINOIS LLC    18-23571      —    
36.    KMART STORES OF TEXAS LLC    18-23572      —    
37.    MYGOFER LLC    18-23573      —    
38.    ROVER BRANDS BUSINESS UNIT, LLC (f/k/a Sears Brands Business Unit Corporation)    18-23574      —    
39.    SEARS HOLDINGS PUBLISHING COMPANY, LLC    18-23575      —    
40.    KMART OF MICHIGAN, INC.    18-23576      —    
41.    SHC DESERT SPRINGS, LLC    18-23577      —    
42.    SOE, INC.    18-23578      —    
43.    STARWEST, LLC    18-23579      —    
44.    STI MERCHANDISING, INC.    18-23580      —    
45.    TROY COOLIDGE NO. 13, LLC    18-23581      —    
46.    BLUELIGHT.COM, INC.    18-23582      —    
47.    SEARS BRANDS, L.L.C.    18-23583      —    
48.    SEARS BUYING SERVICES, INC.    18-23584      —    
49.    KMART.COM LLC    18-23585      —    
50.    SEARS BRANDS MANAGEMENT CORPORATION    18-23586      —    
51.    SHC LICENSED BUSINESS LLC    18-23616      —    
52.    SHC PROMOTIONS LLC    18-23630      —    
53.    SRE HOLDING CORPORATION    19-22031      —    
        

 

 

 
   TOTAL       $ 5,859,180  
        

 

 

 

Footnote:

(a)

The net cash receipts represent cash received by each Debtor’s assigned bank account and excludes the “flow through” disbursements used to pay the Buyer’s accounts payable and payroll.

 

MOR-1a

PAGE 3 OF 17


In re: SEARS HOLDINGS CORPORATION, et al.                   Case No.   

 18-23538 (RDD)                     

(Jointly Administered)      Reporting Period:   

 10/6/19 – 11/2/19

MOR-1b      Federal Tax I.D. No.   

 20-1920798

(in US Dollars)        
(Unaudited)        

SCHEDULE OF DISBURSEMENTS

 

    #    

    

DEBTOR ENTITY NAME

   BANKRUPTCY
CASE NUMBER
     NET CASH
DISBURSEMENTS
(a)
     PLUS: ESTATE
DISBURSEMENTS
MADE BY
OUTSIDE
SOURCES
(i.e. escrow accounts)
     TOTAL
DISBURSEMENTS
(FOR QUARTERLY
FEE PURPOSES)
     F/N  
  1.      SEARS, ROEBUCK AND CO.      18-23537      $ 256,139        —        $ 256,139     
  2.      SEARS HOLDINGS CORPORATION      18-23538        485        20,052,071        20,052,556        (b)  
  3.      KMART HOLDING CORPORATION      18-23539        —          —          —       
  4.      KMART OPERATIONS LLC      18-23540        —          —          —       
  5.      SEARS OPERATIONS LLC      18-23541        —          —          —       
  6.      SERVICELIVE, INC.      18-23542        —          —          —       
  7.      A&E FACTORY SERVICE, LLC      18-23543        —          —          —       
  8.      A&E HOME DELIVERY, LLC      18-23544        —          —          —       
  9.      A&E LAWN & GARDEN, LLC      18-23545        —          —          —       
  10.      A&E SIGNATURE SERVICE, LLC      18-23546        —          —          —       
  11.      FBA HOLDINGS INC.      18-23547        —          —          —       
  12.      INNOVEL SOLUTIONS, INC.      18-23548        14,843        —          14,843     
  13.      KMART CORPORATION      18-23549        —          —          —       
  14.      MAXSERV, INC.      18-23550        —          —          —       
  15.      PRIVATE BRANDS, LTD.      18-23551        —          —          —       
  16.      SEARS DEVELOPMENT CO.      18-23552        —          —          —       
  17.      SEARS HOLDINGS MANAGEMENT CORPORATION      18-23553        27,744        —          27,744     
  18.      SEARS HOME & BUSINESS FRANCHISES, INC.      18-23554        —          —          —       
  19.      SEARS HOME IMPROVEMENT PRODUCTS, INC      18-23555        —          —          —       
  20.      SEARS INSURANCE SERVICES, L.L.C.      18-23556        —          —          —       
  21.      SEARS PROCUREMENT SERVICES, INC.      18-23557        —          —          —       
  22.      SEARS PROTECTION COMPANY      18-23558        —          —          —       
  23.      SEARS PROTECTION COMPANY (PR) INC.      18-23559        —          —          —       
  24.      SEARS ROEBUCK ACCEPTANCE CORP.      18-23560        —          —          —       
  25.      SR-ROVER DE PUERTO RICO, LLC (f/k/a SEARS, ROEBUCK DE PUERTO RICO, INC.)      18-23561        803        —          803     
  26.      SYW RELAY LLC      18-23562        —          —          —       
  27.      WALLY LABS LLC      18-23563        —          —          —       
  28.      BIG BEAVER OF FLORIDA DEVELOPMENT, LLC      18-23564        —          —          —       
  29.      CALIFORNIA BUILDER APPLIANCES, INC.      18-23565        —          —          —       
  30.      FLORIDA BUILDER APPLIANCES, INC.      18-23566        —          —          —       
  31.      KBL HOLDING INC.      18-23567        —          —          —       
  32.      KLC, INC.      18-23568        —          —          —       
  33.      SEARS PROTECTION COMPANY (FLORIDA), LLC      18-23569        —          —          —       
  34.      KMART OF WASHINGTON LLC      18-23570        —          —          —       
  35.      KMART STORES OF ILLINOIS LLC      18-23571        —          —          —       
  36.      KMART STORES OF TEXAS LLC      18-23572        —          —          —       
  37.      MYGOFER LLC      18-23573        —          —          —       
  38.      ROVER BRANDS BUSINESS UNIT, LLC (f/k/a Sears Brands Business Unit Corporation)      18-23574        —          —          —       
  39.      SEARS HOLDINGS PUBLISHING COMPANY, LLC      18-23575        —          —          —       
  40.      KMART OF MICHIGAN, INC.      18-23576        —          —          —       
  41.      SHC DESERT SPRINGS, LLC      18-23577        —          —          —       
  42.      SOE, INC.      18-23578        —          —          —       
  43.      STARWEST, LLC      18-23579        —          —          —       
  44.      STI MERCHANDISING, INC.      18-23580        —          —          —       
  45.      TROY COOLIDGE NO. 13, LLC      18-23581        —          —          —       
  46.      BLUELIGHT.COM, INC.      18-23582        —          —          —       
  47.      SEARS BRANDS, L.L.C.      18-23583        —          —          —       
  48.      SEARS BUYING SERVICES, INC.      18-23584        —          —          —       
  49.      KMART.COM LLC      18-23585        —          —          —       
  50.      SEARS BRANDS MANAGEMENT CORPORATION      18-23586        —          —          —       
  51.      SHC LICENSED BUSINESS LLC      18-23616        —          —          —       
  52.      SHC PROMOTIONS LLC      18-23630        —          —          —       
  53.      SRE HOLDING CORPORATION      19-22031        —          —          —       
        

 

 

    

 

 

    

 

 

    
   TOTAL       $ 300,013      $ 20,052,071      $ 20,352,084     
        

 

 

    

 

 

    

 

 

    

Footnote(s):

(a)

The net cash disbursements represent cash disbursed by the Debtor entity excluding disbursements made on behalf of other Debtor entities, which are reflected on the accounts of the Debtors on whose behalf they are made. “Flow through” disbursements used to pay the Buyer’s accounts payable and payroll are excluded.

(b)

Sears Holdings Corporation (18-23538) disbursements made by outside sources represent professional fee payments.

 

MOR-1b

PAGE 4 OF 17


 In re: SEARS HOLDINGS CORPORATION, et al.                   Case No.   

 18-23538 (RDD)                     

(Jointly Administered)      Reporting Period:   

 10/6/19 – 11/2/19

MOR-1b.1      Federal Tax I.D. No.   

 20-1920798

(in US Dollars)        
(Unaudited)        
 

QTD SUMMARY OF DISBURSEMENTS BY DEBTOR

 

               Q4’19  
          BANKRUPTCY    TOTAL
DISBURSEMENTS
(FOR QUARTERLY
FEE PURPOSES)
     QTD TOTAL
DISBURSEMENTS
(FOR QUARTERLY
FEE PURPOSES)
 

    #    

  

DEBTOR ENTITY NAME

   CASE NUMBER    OCT. 6 - NOV. 2, 2019      OCT. 6 - NOV. 2, 2019  
  1.    SEARS, ROEBUCK AND CO.    18-23537    $ 256,139      $ 256,139  
  2.    SEARS HOLDINGS CORPORATION    18-23538      20,052,556        20,052,556  
  3.    KMART HOLDING CORPORATION    18-23539      —          —    
  4.    KMART OPERATIONS LLC    18-23540      —          —    
  5.    SEARS OPERATIONS LLC    18-23541      —          —    
  6.    SERVICELIVE, INC.    18-23542      —          —    
  7.    A&E FACTORY SERVICE, LLC    18-23543      —          —    
  8.    A&E HOME DELIVERY, LLC    18-23544      —          —    
  9.    A&E LAWN & GARDEN, LLC    18-23545      —          —    
10.    A&E SIGNATURE SERVICE, LLC    18-23546      —          —    
11.    FBA HOLDINGS INC.    18-23547      —          —    
12.    INNOVEL SOLUTIONS, INC.    18-23548      14,843        14,843  
13.    KMART CORPORATION    18-23549      —          —    
14.    MAXSERV, INC.    18-23550      —          —    
15.    PRIVATE BRANDS, LTD.    18-23551      —          —    
16.    SEARS DEVELOPMENT CO.    18-23552      —          —    
17.    SEARS HOLDINGS MANAGEMENT CORPORATION    18-23553      27,744        27,744  
18.    SEARS HOME & BUSINESS FRANCHISES, INC.    18-23554      —          —    
19.    SEARS HOME IMPROVEMENT PRODUCTS, INC    18-23555      —          —    
20.    SEARS INSURANCE SERVICES, L.L.C.    18-23556      —          —    
21.    SEARS PROCUREMENT SERVICES, INC.    18-23557      —          —    
22.    SEARS PROTECTION COMPANY    18-23558      —          —    
23.    SEARS PROTECTION COMPANY (PR) INC.    18-23559      —          —    
24.    SEARS ROEBUCK ACCEPTANCE CORP.    18-23560      —          —    
25.    SR-ROVER DE PUERTO RICO, LLC (f/k/a SEARS, ROEBUCK DE PUERTO RICO, INC.)    18-23561      803        803  
26.    SYW RELAY LLC    18-23562      —          —    
27.    WALLY LABS LLC    18-23563      —          —    
28.    BIG BEAVER OF FLORIDA DEVELOPMENT, LLC    18-23564      —          —    
29.    CALIFORNIA BUILDER APPLIANCES, INC.    18-23565      —          —    
30.    FLORIDA BUILDER APPLIANCES, INC.    18-23566      —          —    
31.    KBL HOLDING INC.    18-23567      —          —    
32.    KLC, INC.    18-23568      —          —    
33.    SEARS PROTECTION COMPANY (FLORIDA), LLC    18-23569      —          —    
34.    KMART OF WASHINGTON LLC    18-23570      —          —    
35.    KMART STORES OF ILLINOIS LLC    18-23571      —          —    
36.    KMART STORES OF TEXAS LLC    18-23572      —          —    
37.    MYGOFER LLC    18-23573      —          —    
38.    ROVER BRANDS BUSINESS UNIT, LLC (f/k/a Sears Brands Business Unit Corporation)    18-23574      —          —    
39.    SEARS HOLDINGS PUBLISHING COMPANY, LLC    18-23575      —          —    
40.    KMART OF MICHIGAN, INC.    18-23576      —          —    
41.    SHC DESERT SPRINGS, LLC    18-23577      —          —    
42.    SOE, INC.    18-23578      —          —    
43.    STARWEST, LLC    18-23579      —          —    
44.    STI MERCHANDISING, INC.    18-23580      —          —    
45.    TROY COOLIDGE NO. 13, LLC    18-23581      —           
46.    BLUELIGHT.COM, INC.    18-23582      —          —    
47.    SEARS BRANDS, L.L.C.    18-23583      —          —    
48.    SEARS BUYING SERVICES, INC.    18-23584      —          —    
49.    KMART.COM LLC    18-23585      —          —    
50.    SEARS BRANDS MANAGEMENT CORPORATION    18-23586      —          —    
51.    SHC LICENSED BUSINESS LLC    18-23616      —          —    
52.    SHC PROMOTIONS LLC    18-23630      —          —    
53.    SRE HOLDING CORPORATION    19-22031      —          —    
        

 

 

    

 

 

 
   Total       $ 20,352,084      $ 20,352,084  
        

 

 

    

 

 

 

 

MOR-1b.1

PAGE 5 OF 17


 In re: SEARS HOLDINGS CORPORATION, et al.                   Case No.   

 18-23538 (RDD)                     

(Jointly Administered)      Reporting Period:   

 10/6/19 – 11/2/19

MOR-1c.1      Federal Tax I.D. No.   

 20-1920798

(in US Dollars)        
(Unaudited)        

BANK ACCOUNT INFORMATION

 

    #    

    

LEGAL ENTITY

   CASE
NUMBER
     BANK      LAST 4
DIGITS
ACCOUNT #
     BANK
BALANCE
     F/N  
 

Debtor Bank Accounts Opened Pre-Closing (Open)

             
  1.      Kmart Corporation      18-23549        Bank of America, N.A.        3816      $ 25,049        (a
  2.      Kmart Corporation      18-23549        Bank of America, N.A.        5450        10,000,000        (b
  3.      Kmart Corporation      18-23549        Bank of America, N.A.        8978        3,393,612        (b
  4.      Sears Holdings Management Corporation      18-23553        US Bank        8942        2,117,494        (b
  5.      Sears, Roebuck and Co.      18-23537        Bank of America, N.A.        6570        32,868,452        (b
  6.      Sears, Roebuck and Co.      18-23537        Bank of America, N.A.        8279        490,835        (b
  7.      Sears, Roebuck and Co.      18-23537        Bank of America, N.A.        8965        19,687,249        (b
  8.      Sears, Roebuck and Co.      18-23537        Bank of America, N.A.        9540        —          (b
 

Debtor Bank Accounts Opened Post-Closing

             
  9.      Sears Holdings Corporation      18-23538        Axos Bank        0143        734,947        (b
  10.      Sears Holdings Management Corporation      18-23553        Bank of America, N.A.        7354        —          (a
  11.      Sears Roebuck Acceptance Corp.      18-23560        Bank of America, N.A.        8036        535        (a
  12.      Kmart Corporation      18-23549        Bank of America, N.A.        7257        —          (a
  13.      Kmart Corporation      18-23549        Bank of America, N.A.        7260        208,352        (a
  14.      Kmart Corporation      18-23549        Bank of America, N.A.        7338        —          (a
  15.      Kmart Corporation      18-23549        Bank of America, N.A.        7341        —          (a
  16.      Kmart Corporation      18-23549        Bank of America, N.A.        8751        —          (a
  17.      Kmart Corporation      18-23549        Bank of America, N.A.        8968        —          (a
  18.      Kmart Corporation      18-23549        Bank of America, N.A.        8971        —          (a
  19.      Kmart Corporation      18-23549        Bank of America, N.A.        8984        —          (a
  20.      Sears Holdings Management Corporation      18-23553        Bank of America, N.A.        7367        19,000,000        (a
  21.      Sears, Roebuck and Co.      18-23537        Bank of America, N.A.        7231        —          (b
  22.      Sears, Roebuck and Co.      18-23537        Bank of America, N.A.        7244        6,361,779        (a
  23.      Sears, Roebuck and Co.      18-23537        Bank of America, N.A.        7312        15,000,000        (a
  24.      Sears, Roebuck and Co.      18-23537        Bank of America, N.A.        7325        —          (a
  25.      Sears, Roebuck and Co.      18-23537        Bank of America, N.A.        8764        —          (a
  26.      Sears, Roebuck and Co.      18-23537        Bank of America, N.A.        8997        93,408        (a
  27.      Sears, Roebuck and Co.      18-23537        Bank of America, N.A.        9006        —          (a
  28.      Sears, Roebuck and Co.      18-23537        Bank of America, N.A.        9019        —          (a
 

Debtor Bank Accounts Opened Pre-Closing (Closed)

             
  29.      Kmart Corporation      18-23549        BancorpSouth        3945        —          (c
  30.      Kmart Corporation      18-23549        Bank of America, N.A.        2637        N/A        (c
  31.      Kmart Corporation      18-23549        Bank of America, N.A.        3428        N/A        (c
  32.      Kmart Corporation      18-23549        Bank of America, N.A.        3884        N/A        (c
  33.      Kmart Corporation      18-23549        Bank of America, N.A.        4067        N/A        (c
  34.      Kmart Corporation      18-23549        Bank of America, N.A.        4339        N/A        (c
  35.      Kmart Corporation      18-23549        Bank of America, N.A.        6688        N/A        (c
  36.      Kmart Corporation      18-23549        Bank of America, N.A.        8793        N/A        (c
  37.      Kmart Corporation      18-23549        Bank of America, N.A.        8832        N/A        (c
  38.      Kmart Corporation      18-23549        Bank Of Oklahoma        5769        —          (c
  39.      Kmart Corporation      18-23549        Capital One Bank        9632        —          (c
  40.      Kmart Corporation      18-23549        Cherokee State Bank        0494        —          (c
  41.      Kmart Corporation      18-23549        Fidelity Bank        2180        —          (c
  42.      Kmart Corporation      18-23549        First and Farmers Bank        0543        —          (c
  43.      Kmart Corporation      18-23549        First Interstate Bank of Riverton        1274        —          (c
  44.      Kmart Corporation      18-23549        First National Bank        0001        —          (c
  45.      Kmart Corporation      18-23549        First National Bank of Grayson        4081        —          (c
  46.      Kmart Corporation      18-23549        First Tennessee        0555        —          (c
  47.      Kmart Corporation      18-23549        Hilltop National Bank        4003        —          (c

 

MOR-1c.1

PAGE 6 OF 17


 In re: SEARS HOLDINGS CORPORATION, et al.                   Case No.   

 18-23538 (RDD)                     

(Jointly Administered)      Reporting Period:   

 10/6/19 – 11/2/19

MOR-1c.1      Federal Tax I.D. No.   

 20-1920798

(in US Dollars)        
(Unaudited)        

BANK ACCOUNT INFORMATION

 

    #    

  

LEGAL ENTITY

   CASE
NUMBER
     BANK    LAST 4
DIGITS
ACCOUNT #
     BANK
BALANCE
     F/N  
48.    Kmart Corporation      18-23549      M&T Bank      2880        —          (c
49.    Kmart Corporation      18-23549      NorState Federal Credit Union      6752        —          (c
50.    Kmart Corporation      18-23549      Old National Bank      5501        —          (c
51.    Kmart Corporation      18-23549      PNC Bank      5929        —          (c
52.    Kmart Corporation      18-23549      United Missouri Bank      3100        —          (c
53.    Kmart Corporation      18-23549      United Missouri Bank      4642        —          (c
54.    Kmart Corporation      18-23549      Wells Fargo      5915        —          (c
55.    Kmart Corporation      18-23549      Zions National Bank      6778        —          (c
56.    Sears, Roebuck and Co.      18-23537      Bank of America, N.A.      0422        N/A        (c
57.    Sears, Roebuck and Co.      18-23537      Bank of America, N.A.      1496        N/A        (c
58.    Sears, Roebuck and Co.      18-23537      Bank of America, N.A.      1561        N/A        (c
59.    Sears, Roebuck and Co.      18-23537      Bank of America, N.A.      1579        N/A        (c
60.    Sears, Roebuck and Co.      18-23537      Bank of America, N.A.      2154        N/A        (c
61.    Sears, Roebuck and Co.      18-23537      Bank of America, N.A.      2439        N/A        (c
62.    Sears, Roebuck and Co.      18-23537      Bank of America, N.A.      2648        N/A        (c
63.    Sears, Roebuck and Co.      18-23537      Bank of America, N.A.      5505        N/A        (c
64.    Sears, Roebuck and Co.      18-23537      Bank of America, N.A.      6350        N/A        (c
65.    Sears, Roebuck and Co.      18-23537      Bank of America, N.A.      6388        N/A        (c
66.    Sears, Roebuck and Co.      18-23537      Bank of America, N.A.      8492        N/A        (c
67.    Sears, Roebuck and Co.      18-23537      Bank of America, N.A.      8501        N/A        (c
68.    Sears, Roebuck and Co.      18-23537      PNC Bank      2095        —          (c
69.    Sears, Roebuck and Co.      18-23537      Regions Bank      3439        —          (c
70.    Sears, Roebuck and Co.      18-23537      Regions Bank      5722        —          (c
71.    Sears, Roebuck and Co.      18-23537      Wells Fargo      5907        —          (c

 

MOR-1c.1

PAGE 7 OF 17


In re: SEARS HOLDINGS CORPORATION, et al.                   Case No.   

 18-23538 (RDD)                     

(Jointly Administered)      Reporting Period:   

 10/6/19 – 11/2/19

MOR-1c.2      Federal Tax I.D. No.   

 20-1920798

(in US Dollars)        
(Unaudited)        

BANK ACCOUNT INFORMATION (CON’T)

Footnote(s):

(a)

The bank statement(s) are for the period from 10/5/19 through 11/1/19.

(b)

The bank statement(s) are for the period from 10/1/19 through 10/31/19.

(c)

The bank account(s) have been closed.

 

MOR-1c.2

PAGE 8 OF 17


In re: SEARS HOLDINGS CORPORATION, et al.                   Case No.   

 18-23538 (RDD)                     

(Jointly Administered)      Reporting Period:   

 10/6/19 – 11/2/19

MOR-1c.3      Federal Tax I.D. No.   

 20-1920798

(in US Dollars)        
(Unaudited)        

BANK ACCOUNT INFORMATION

 

    #    

    

LEGAL ENTITY

   CASE
NUMBER
  

BANK

   LAST 4
DIGITS
ACCOUNT #
 
 

Bank Accounts Transferred to Buyer at Closing

 
      1.     

California Builder Appliances, Inc.

   18-23565   

Bank of America, N.A.

     6850  
  2.     

Florida Builder Appliances, Inc.

   18-23566   

Bank of America, N.A.

     7770  
  3.     

Innovel Solutions, Inc.

   18-23548   

Bank of America, N.A.

     3618  
  4.     

Kmart Corporation

   18-23549   

Banco Popular

     0247  
  5.     

Kmart Corporation

   18-23549   

Banco Popular

     6180  
  6.     

Kmart Corporation

   18-23549   

Bank of America, N.A.

     0136  
  7.     

Kmart Corporation

   18-23549   

Bank of America, N.A.

     0508  
  8.     

Kmart Corporation

   18-23549   

Bank of America, N.A.

     0986  
  9.     

Kmart Corporation

   18-23549   

Bank of America, N.A.

     0994  
  10.     

Kmart Corporation

   18-23549   

Bank of America, N.A.

     1000  
  11.     

Kmart Corporation

   18-23549   

Bank of America, N.A.

     2102  
  12.     

Kmart Corporation

   18-23549   

Bank of America, N.A.

     3295  
  13.     

Kmart Corporation

   18-23549   

Bank of America, N.A.

     3531  
  14.     

Kmart Corporation

   18-23549   

Bank of America, N.A.

     3896  
  15.     

Kmart Corporation

   18-23549   

Bank of America, N.A.

     3929  
  16.     

Kmart Corporation

   18-23549   

Bank of America, N.A.

     4404  
  17.     

Kmart Corporation

   18-23549   

Bank of America, N.A.

     6005  
  18.     

Kmart Corporation

   18-23549   

Bank of America, N.A.

     6911  
  19.     

Kmart Corporation

   18-23549   

Bank of America, N.A.

     7539  
  20.     

Kmart Corporation

   18-23549   

Bank of America, N.A.

     7542  
  21.     

Kmart Corporation

   18-23549   

Bank of America, N.A.

     7555  
  22.     

Kmart Corporation

   18-23549   

Bank of America, N.A.

     7743  
  23.     

Kmart Corporation

   18-23549   

Bank of America, N.A.

     7756  
  24.     

Kmart Corporation

   18-23549   

Bank of America, N.A.

     7769  
  25.     

Kmart Corporation

   18-23549   

Bank of America, N.A.

     7772  
  26.     

Kmart Corporation

   18-23549   

Bank of America, N.A.

     7785  
  27.     

Kmart Corporation

   18-23549   

Bank of America, N.A.

     7798  
  28.     

Kmart Corporation

   18-23549   

Bank of America, N.A.

     7808  
  29.     

Kmart Corporation

   18-23549   

Bank of America, N.A.

     7811  
  30.     

Kmart Corporation

   18-23549   

Bank of America, N.A.

     7824  
  31.     

Kmart Corporation

   18-23549