Tenth largest retailer by annual revenue in the US, Sears Holdings Co. is getting a US $ 400 million secured short-term loan from the hedge fund of its Chief Executive, Eddie Lampert.
It comes less than a week after Fitch Ratings downgraded Sears Holdings’ credit rating to CC status, meaning default of some kind appears probable. Fitch claims that Sears may not have enough cash beyond 2016. Half of the loan was funded very recently and the other half at the end of this month, will come due at the end of this year, though the maturity date can be extended to February 28, 2015 as long as there is no event of default.
