Failure to terminate the retiree plan would make it more difficult for the estate to confirm its bankruptcy plan, which could lead to liquidation of the estate and much lower recoveries for all creditors including the retirees, according to the filing. Sears estate lawyer Ray Schrock said in a court hearing last month that they tried to make ESL assume the retiree benefits, but were unsuccessful.
A hearing on the proposed order is slated for Aug. 12.
The case is Sears Holdings Corp., 18-23538, U.S. Bankruptcy Court, Southern District of New York (White Plains).
This story provided by Bloomberg News.