Sears Holdings – Trade Vendor Objects to DIP Financing, Expresses Concerns About Further Subordination of All 503(b)(9) Claims

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December 13, 2018 – Mien Co. Ltd (“Mien”) objected to the Debtors’ request to obtain debtor-in-possession (“DIP”) financing [Docket No. 1202]. The objection states, “There is little doubt that the Debtors need this financing, it is unclear to Mien, a trade vendor with approximately $484,000 in 503(b)(9) claims and an aggregate of almost $4 million in unsecured claims, how it will be impacted by this financing and more particularly the interplay the new financing will have on the relief sought in the Court’s previous orders. By Mien’s estimate, there are over $350,000,000 in claimants who hold 503(b)(9) claims. That is significantly more than the $240 million to be held in the Winddown reserve account and equal to the amount of financing sought in post-petition financing….Given that 503(b)(9) claims may exceed $350 million, of which over $30 million have already been sold to claims purchasers, the Debtors should be compelled to provide comfort to holders of 503(b)(9) claims that they will be paid in full, not that they are being further subordinated.”

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