A group of Sears Holdings Corp.’s creditors say the remaining part of the retailer’s estate left behind in bankruptcy is so low on cash that it should be liquidated under chapter 7, The Wall Street Journal reported. The creditors are asking Judge Robert Drain to convert the chapter 11 case to chapter 7 because virtually all of the company’s assets have been sold and there is no chance that what remains of the bankrupt retailer will be rehabilitated. The Sears chapter 11 estate doesn’t have the cash to pay off a $180 million shortfall in administrative claims, according to a court filing. And yet, the estate continues to mount up professional fees. Judge Drain is scheduled to hold a hearing on the bankruptcy case conversion request on Oct. 23 in White Plains. The objection deadline is Oct. 16. A confirmation hearing on Sears’s chapter 11 plan, which is backed by the official committee representing the estate’s unsecured creditors, is scheduled for Sept. 27.
