Leon Cooperman’s Omega Advisors Inc. is trying to roll back a bankruptcy auction that raised $82.5 million for Sears Holdings Corp. , saying the sale process was secretly skewed to squeeze credit-insurance buyers, WSJ Pro Bankruptcy reported. Omega alleged in court papers filed on Thursday that Sears struck a backroom deal to swing the auction in favor of Cyrus Capital Partners LP, one of the bankrupt retailer’s biggest creditors. Cyrus won the auction last month, buying up hundreds of millions of dollars in loan claims between different Sears affiliates. Cyrus bought the loan claims at auction, preventing them from falling into the hands of the insurance holders that need them and potentially salvaging its own bad bet on Sears. Omega wants the sale to Cyrus voided. Bankruptcy Judge Robert Drain has scheduled a Dec. 20 hearing on the matter.
