Sears Holdings Chairman Eddie Lampert is in discussions with at least one potential partner to contribute to a $300 million bankruptcy loan the U.S. retailer is seeking, Reuters reported. Lampert's hedge fund, ESL Investments, has held discussions with Cyrus Capital Partners, an investment firm that holds some of Sears' existing debt, about sharing the burden of funding portions of the $300 million loan, which would be separate from another $300 million bankruptcy loan that Sears' banks have offered to provide. Through his hedge fund, Lampert has invested billions of dollars in Sears since he created it in its current form in 2005 through a merger with peer Kmart. As a result, he is the department store operator's largest shareholder and creditor. The bankruptcy loan from the banks, including Bank of America, Wells Fargo, and Citigroup, falls first in line for repayment in the Sears bankruptcy case, while the $300 million loan that Sears is seeking from lenders including ESL would be repaid afterwards.
