Sears Holdings Corp. is finalizing a deal with financial firm Great American Capital Partners and other lenders for $350 million in critical bankruptcy financing that would keep the U.S. retailer open through the holidays, Reuters reported. The deal would increase an existing financing package from banks to give Sears a bankruptcy loan totaling $650 million. Bank lenders already promised $300 million when Sears filed for bankruptcy last month. The loan discussions come as the 125-year-old retailer has been facing calls to wind down its business from a key group of its creditors, including bondholders and landlords. The creditors believe they will collect more on what they are owed if Sears liquidates its assets, according to bankruptcy-court papers. The loan from Great American Capital Partners, an affiliate of liquidation specialist Great American Group and financial services firm B. Riley Financial Inc (RILY.O), and its partners would give Sears extra breathing room to seek buyers for its assets. Sears picked Great American’s proposal for a bankruptcy loan instead of an offer from hedge funds including Cyrus Capital Partners LP.
