EX-99.2 4 d820732dex992.htm EX-99.2 EX-99.2

Exhibit 99.2

 

In re: Sears Holdings Corporation, et al.    Case No. 18-23538 (RDD)
Debtors    Reporting Period: August 4 – August 31, 2019
   Federal Tax I.D. # 20-1920798

GLOBAL NOTES AND STATEMENTS OF LIMITATIONS

AND DISCLAIMERS REGARDING THE DEBTORS’ MONTHLY OPERATING REPORTS

On October 15, 2018 (the “Petition Date”), Sears Holdings Corporation and 49 of its debtor affiliates, as debtors and debtors in possession in the above-captioned chapter 11 cases (collectively, the “Debtors,” and together with the Debtors’ non-debtor affiliates, the “Company”)1 filed voluntary petitions for relief under chapter 11 of title 11 of the United States Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the Southern District of New York (the “Bankruptcy Court”). In addition, Debtors SHC Licensed Business LLC, SHC Promotions LLC and SRe Holding Corporation filed their voluntary petitions for relief on October 18, 2018, October 22, 2018 and January 7, 2019, respectively. The Debtors’ chapter 11 cases are being jointly administered for procedural purposes only pursuant to Rule 1015(b) of the Federal Rules of Bankruptcy Procedure (the “Bankruptcy Rules”) under the caption Sears Holdings Corporation., et al., Case No. 18-23538 (RDD) (S.D.N.Y.), pursuant to an order entered by the Bankruptcy Court on October 15, 2018 [ECF No. 118]. On October 24, 2018, the United States Trustee for Region 2 (the “U.S. Trustee”) appointed an official committee of unsecured creditors pursuant to section 1102(a) of the Bankruptcy Code (the “Creditors’ Committee”) [ECF No. 276]. The Debtors continue to operate their business and manage their properties as debtors in possession pursuant to sections 1107(a) and 1108 of the Bankruptcy Code. On February 8, 2019, the Bankruptcy Court entered the Order (I) Approving the Asset Purchase Agreement Among Sellers and Buyer, (II) Authorizing the Sale of Certain of the Debtors’ Assets Free and Clear of Liens, Claims, Interests and Encumbrances, (III) Authorizing the Assumption and Assignment of Certain Executory Contracts, and Leases in Connection Therewith and (IV) Granting Related Relief [ECF No. 2507] (the “Sale Order”). The Sale Transaction (as defined in the Sale Order) with Transform Holdco LLC (the “Buyer”) closed on February 11, 2019 (the “Closing”).

The following notes, statements and limitations should be referred to, and referenced in connection with, any review of the MOR.

 

1 

The Debtors in these chapter 11 cases, along with the last four digits of each Debtor’s federal tax identification number, are as follows: Sears Holdings Corporation (0798); Kmart Holding Corporation (3116); Kmart Operations LLC (6546); Sears Operations LLC (4331); Sears, Roebuck and Co. (0680); ServiceLive Inc. (6774); SHC Licensed Business LLC (3718); A&E Factory Service, LLC (6695); A&E Home Delivery, LLC (0205); A&E Lawn & Garden, LLC (5028); A&E Signature Service, LLC (0204); FBA Holdings Inc. (6537); Innovel Solutions, Inc. (7180); Kmart Corporation (9500); MaxServ, Inc. (7626); Private Brands, Ltd. (4022); Sears Development Co. (6028); Sears Holdings Management Corporation (2148); Sears Home & Business Franchises, Inc. (6742); Sears Home Improvement Products, Inc. (8591); Sears Insurance Services, L.L.C. (7182); Sears Procurement Services, Inc. (2859); Sears Protection Company (1250); Sears Protection Company (PR) Inc. (4861); Sears Roebuck Acceptance Corp. (0535); SR - Rover de Puerto Rico, LLC (f/k/a Sears, Roebuck de Puerto Rico, Inc.) (3626); SYW Relay LLC (1870); Wally Labs LLC (None); SHC Promotions LLC (9626); Big Beaver of Florida Development, LLC (None); California Builder Appliances, Inc. (6327); Florida Builder Appliances, Inc. (9133); KBL Holding Inc. (1295); KLC, Inc. (0839); Kmart of Michigan, Inc. (1696); Kmart of Washington LLC (8898); Kmart Stores of Illinois LLC (8897); Kmart Stores of Texas LLC (8915); MyGofer LLC (5531); Rover Brands Business Unit, LLC (4658); Sears Holdings Publishing Company, LLC. (5554); Sears Protection Company (Florida), L.L.C. (4239); SHC Desert Springs, LLC (None); SOE, Inc. (9616); StarWest, LLC (5379); STI Merchandising, Inc. (0188); Troy Coolidge No. 13, LLC (None); BlueLight.com, Inc. (7034); Sears Brands, L.L.C. (4664); Sears Buying Services, Inc. (6533); Kmart.com LLC (9022); Sears Brands Management Corporation (5365); and SRe Holding Corporation (4816). The location of the Debtors’ corporate headquarters is 3333 Beverly Road, Hoffman Estates, Illinois 60179.

In re: Sears Holdings Corporation, et al.    Case No. 18-23538 (RDD)
Debtors    Reporting Period: August 4 – August 31, 2019
   Federal Tax I.D. # 20-1920798

 

1.

Basis of Presentation. The Debtors are filing their consolidated monthly operating report (the “MOR”) solely for purposes of complying with the monthly operating requirements applicable in the Debtors’ chapter 11 cases. The MOR is in a format acceptable to the U.S. Trustee for the Southern District of New York (the “U.S. Trustee”). The MOR should not be relied upon by any persons for information relating to current or future financial conditions, events, or performance of any of the Debtors or their affiliates.

In preparing the MOR, the Debtors relied on financial data derived from their books and records that was available at the time of preparation. Subsequent information or discovery may result in material changes to the MOR and errors or omissions may exist. Notwithstanding any such discovery, new information, or errors or omissions, the Debtors do not undertake any obligation or commitment to update the MOR.

This MOR has not been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and does not include all of the information and footnotes required by U.S. GAAP. Therefore, there can be no assurance that the consolidated financial information presented herein is complete, and readers are strongly cautioned not to place undue reliance on the MOR.

The information furnished in this report includes primarily normal recurring adjustments but does not include all the adjustments that would typically be made for the quarterly and annual consolidated financial statements to be in accordance with U.S. GAAP.

Furthermore, the monthly financial information contained herein has not been subjected to the same level of accounting review and testing that the Debtors apply in the preparation of their quarterly and annual consolidated financial information in accordance with U.S. GAAP. Accordingly, upon the application of such procedures, the Debtors believe that the financial information may be subject to change, and these changes could be material.

In future periods, any changes to prior period balances will be reflected in the current month’s MOR.

The results of operations contained herein are not necessarily indicative of results that may be expected from any other period or for the full year and may not necessarily reflect the consolidated results of operations and financial position of the Debtors in the future.

 

2.

Reporting Period. Unless otherwise noted herein, the MOR generally reflects the Debtors’ books and records and financial activity occurring during the applicable reporting period. Except as otherwise noted, no adjustments have been made for activity occurring after the close of the reporting period.

 

3.

Consolidated Entity Accounts Payable and Disbursements Systems. Cash was received and disbursed by the Debtors as described in the Motion of Debtors for Authority to (I) Continue Using Existing Cash Management System, Bank Accounts, and Business Forms, (II) Implement Ordinary Course Changes to Cash Management System, (III)

In re: Sears Holdings Corporation, et al.    Case No. 18-23538 (RDD)
Debtors    Reporting Period: August 4 – August 31, 2019
   Federal Tax I.D. # 20-1920798

 

  Continue Intercompany Transactions, and (IV) Provide Administrative Expense Priority for Post-Petition Intercompany Claims and Related Relief (the “Cash Management Motion”) to the extent approved in the order granting the Cash Management Motion on a final basis (the “Final Cash Management Order”) [ECF No. 1394].

On the Closing, in accordance with the terms of the Asset Purchase Agreement (as defined in the Sale Order), all of the Debtors’ bank accounts, other than those accounts listed on the annexed MOR-1c.1 schedule titled “Bank Account Information,” were transferred to the Buyer (as defined in the Sale Order), not including any cash in such transferred bank accounts.

 

4.

Accuracy. The financial information disclosed herein was not prepared in accordance with federal or state securities laws or other applicable non-bankruptcy law or in lieu of complying with any periodic reporting requirements thereunder. Persons and entities trading in or otherwise purchasing, selling, or transferring the claims against or equity interests in the Debtors should evaluate this financial information in light of the purposes for which it was prepared. The Debtors are not liable for and undertake no responsibility to indicate variations from securities laws or for any evaluations of the Debtors based on this financial information or any other information.

 

5.

Debtor-in-Possession Financing. On November 30, 2018, the Debtors received authorization from the Bankruptcy Court to access their $1,830,378,380 Debtor-in-Possession ABL Facility on a final basis pursuant to the Final Order (I) Authorizing the Debtors to (A) Obtain Post-Petition Financing, (B) Grant Senior Secured Priming Liens and Superpriority Administrative Expense Claims, and (C) Utilize Cash Collateral; (II) Granting Adequate Protection to the Pre-Petition Secured Parties; (III) Modifying the Automatic Stay; and (IV) Granting Related Relief [ECF No. 955] (the “Final DIP ABL Order”), and on December 28, 2018 the Debtors received authorization to access on a final basis their $350 million Junior Debtor-in-Possession Facility pursuant to the Final Junior DIP Order (I) Authorizing the Debtors to (A) Obtain Post-Petition Financing and (B) Grant Secured Priming Liens and Superpriority Administrative Expense Claim; (II) Modifying the Automatic Stay; and (IV) Granting Related Relief [ECF No. 1436] (the “Final Junior DIP Order,” and together with the Final ABL DIP Order, the “DIP Orders”) and the documents governing the Debtor-in-Possession financing thereunder (the “DIP Loan Documents”). Please see the DIP Orders for additional detail.

Pursuant to the Sale Order, on the Closing, prepetition secured debt under the Final DIP ABL Order was repaid, and secured obligations under the Final Junior DIP Order were rolled into new financing of the Buyer and otherwise discharged as against the Debtors.

 

6.

Payment of Pre-Petition Claims Pursuant to Court Orders. Within the first two days of the Debtors’ chapter 11 cases, the Bankruptcy Court entered orders (the “First Day Orders”) authorizing, but not directing, the Debtors to pay, on an interim basis, certain pre-petition (a) claims of critical vendors, shippers, warehousemen, other lien claimants, and foreign creditors; (b) taxes; (c) employee wages, salaries and other compensation and benefits; and (d) obligations related to the use of the Debtors’ cash management system,

In re: Sears Holdings Corporation, et al.    Case No. 18-23538 (RDD)
Debtors    Reporting Period: August 4 – August 31, 2019
   Federal Tax I.D. # 20-1920798

 

  among other things. On November 16, 2018, the Bankruptcy Court approved the relief requested in connection with the First Day Orders on a final basis, except for the Final Cash Management Order, which was entered on December 21, 2018. To the extent any payments were made on account of such claims or obligations following the commencement of these chapter 11 cases pursuant to the authority granted to the Debtors by the Bankruptcy Court under the First Day Orders, such payments have been included in the MOR unless otherwise noted.

As stated above, pursuant to the Sale Order, on the Closing, prepetition secured debt under the Final DIP ABL Order was repaid, and secured obligations under the Final Junior DIP Order were rolled into new financing of the Buyer and otherwise discharged as against the Debtors.

 

7.

Reservation of Rights. The Debtors reserve all rights to amend or supplement the MOR in all respects, as may be necessary or appropriate. Nothing contained in this MOR shall constitute a waiver of any of the Debtors’ rights or an admission with respect to their chapter 11 cases.

 

8.

Specific MOR Disclosures.

 

  a.

Notes to MOR-la: The net cash receipts represent cash received by each Debtor assigned bank account and excludes the “flow through” disbursements used to pay the Buyer’s accounts payable and payroll.

 

  b.

Notes to MOR-1b: Certain Debtors make disbursements on behalf of other Debtors. The net cash disbursements represent cash disbursed by the applicable Debtor excluding disbursements made on behalf of other Debtors, which are reflected on the accounts of the Debtors on whose behalf they are made. The total disbursements (for quarterly fee purposes) represent the disbursements made on behalf of each affiliated Debtor and excludes the “flow through” disbursements used to pay the Buyer’s accounts payable and payroll.

 

  c.

Notes to MOR-1c.1 & 1c.2: All amounts listed are the bank balances as of the dates in the footnotes on MOR-1c.2. The Debtors have, on a timely basis, performed bank account reconciliations in the ordinary course of business. Due to the level of detailed records, copies of the bank account statements and reconciliations are available for inspection only upon request.

 

  d.

Notes to MOR-1d: This MOR lists the professional fees paid during this reporting period to Restructuring Professionals retained by the Debtors in these chapter 11 cases.

 

  e.

Notes to MOR-2 & MOR-3: The amounts currently classified as liabilities subject to compromise may be subject to future adjustments depending on Bankruptcy Court actions, payments pursuant to Bankruptcy Court orders, further developments with respect to, among other things, the reconciliation and

In re: Sears Holdings Corporation, et al.    Case No. 18-23538 (RDD)
Debtors    Reporting Period: August 4 – August 31, 2019
   Federal Tax I.D. # 20-1920798

 

  adjudication of claims, determinations of the secured status of certain claims, the value of any collateral securing such claims, rejection of executory contracts, or other events. The following balance sheet accounts have been reclassified to liabilities subject to compromise (“LSTC”) for this reporting period: short-term borrowings, current portion of long-term debt, intercompany payables, certain other current liabilities, long-term debt, unearned revenues and other long-term liabilities. These LSTC are offset by investment in non-debtor subsidiaries and with the following recorded in prepaid expenses and other current assets and other long-term assets: deferred tax credits, tax credits, and deferred acquisition costs related to new protection service agreements. Intercompany receivables and payables between the Debtors and non-debtor entities net to zero in the Debtors’ consolidated balance sheet. The Debtors continue to evaluate their assets and liabilities, and any adjustments will be reflected in next month’s MOR.

 

  f.

Notes to MOR-4a: For status of post-petition tax payments, see disclosures as noted on MOR-4a. Due to the size and detail of such records, (i) copies of IRS Form 6123 or payment receipts; (ii) copies of tax returns filed during the reporting period; and (iii) a taxes aging schedule will be made available upon reasonable request in writing to bankruptcy counsel for the Debtors.

 

  g.

Notes to MOR-4b: As of the date of this report, there is an ongoing dispute between the Debtors and the Buyer regarding certain post-petition payables.

 

  h.

Notes to MOR-4c: As of the date of this report, there is an ongoing dispute between the Debtors and the Buyer regarding certain cash and cash proceeds received by the Buyer that the Debtors believe should be transferred to the Debtors’ accounts. The Debtors have recorded a $100 million receivable due from the Buyer for the amounts in dispute, including the post-petition payables referenced in paragraph (g) of these Notes. This receivable has since been reduced for amounts received from the Buyer.

UNITED STATES BANKRUPTCY COURT

SOUTHERN DISTRICT OF NEW YORK

 

In re: SEARS HOLDINGS CORPORATION, et al.      Case No.    

18-23538 (RDD)            

Debtors      Reporting Period:    

8/4/19 - 8/31/19

     Federal Tax I.D. No.    

20-1920798

CORPORATE MONTHLY OPERATING REPORT

 

REQUIRED DOCUMENTS

   

Form No.

    Document
Attached		    Explanation Attached  

Schedule of Cash Receipts

    MOR-1a    X   

Schedule of Cash Disbursements

    MOR-1b & 1b.1    X   

Bank Reconciliation (or copies of debtor’s bank reconciliations)

    MOR-1c.1 & 1c.2 & 1c.3    X   

Copies of bank statements

            Available Upon Request  

Cash disbursements journals

            Available Upon Request  

Schedule of Retained Restructuring Professionals Fees

    MOR-1d    X   

Statement of Operations

    MOR-2    X   

Balance Sheet

    MOR-3    X   

Status of Post-petition Taxes

    MOR-4a    X   

Copies of IRS Form 6123 or payment receipt

            Available Upon Request  

Copies of tax returns filed during reporting period

            Available Upon Request  

Summary of Unpaid Post-petition Debts

    MOR-4b    X   

Listing of Aged Accounts Payable

            Available Upon Request  

Accounts Receivable Reconciliation and Aging

    MOR-4c    X   

Payments to Insiders

    MOR-5    X   

Debtor Questionnaire

    MOR-6    X   

I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and the attached documents are true and correct to the best of my knowledge and belief.

 

/s/ Mohsin Y. Meghji                                                                                10/16/19

Signature of Authorized Individual                                                         Date

Mohsin Y. Meghji                                                                                    Chief Restructuring Officer

Printed Name of Authorized Individual                                                  Title of Authorized Individual

 

MOR

PAGE 1 OF 17

In re: SEARS HOLDINGS CORPORATION, et al.      Case No.    

18-23538 (RDD)            

(Jointly Administered)      Reporting Period:    

8/4/19 - 8/31/19

     Federal Tax I.D. No.    

20-1920798

 

NOTES TO MONTHLY OPERATING REPORT

The Monthly Operating Report (“MOR”) includes activity for the following Debtors:

 

#       

DEBTOR ENTITY NAME

    FILING
DATE		    BANKRUPTCY
CASE NUMBER		    COMPLETE EIN OR
OTHER TAXPAYER I.D.		  
1.   

SEARS, ROEBUCK AND CO.

    10/15/18    18-23537      36-1750680  
2.   

SEARS HOLDINGS CORPORATION

    10/15/18    18-23538      20-1920798  
3.   

KMART HOLDING CORPORATION

    10/15/18    18-23539      32-0073116  
4.   

KMART OPERATIONS LLC

    10/15/18    18-23540      32-0456546  
5.   

SEARS OPERATIONS LLC

    10/15/18    18-23541      35-2524331  
6.   

SERVICELIVE, INC.

    10/15/18    18-23542      36-4616774  
7.   

A&E FACTORY SERVICE, LLC

    10/15/18    18-23543      36-4486695  
8.   

A&E HOME DELIVERY, LLC

    10/15/18    18-23544      37-1500205  
9.   

A&E LAWN & GARDEN, LLC

    10/15/18    18-23545      13-4275028  
10.   

A&E SIGNATURE SERVICE, LLC

    10/15/18    18-23546      37-1500204  
11.   

FBA HOLDINGS INC.

    10/15/18    18-23547      36-4186537  
12.   

INNOVEL SOLUTIONS, INC.

    10/15/18    18-23548      36-1857180  
13.   

KMART CORPORATION

    10/15/18    18-23549      38-0729500  
14.   

MAXSERV, INC.

    10/15/18    18-23550      74-2707626  
15.   

PRIVATE BRANDS, LTD.

    10/15/18    18-23551      55-0544022  
16.   

SEARS DEVELOPMENT CO.

    10/15/18    18-23552      36-2476028  
17.   

SEARS HOLDINGS MANAGEMENT CORPORATION

    10/15/18    18-23553      20-3592148  
18.   

SEARS HOME & BUSINESS FRANCHISES, INC.

    10/15/18    18-23554      98-0126742  
19.   

SEARS HOME IMPROVEMENT PRODUCTS, INC.

    10/15/18    18-23555      25-1698591  
20.   

SEARS INSURANCE SERVICES, L.L.C.

    10/15/18    18-23556      36-4287182  
21.   

SEARS PROCUREMENT SERVICES, INC.

    10/15/18    18-23557      30-0092859  
22.   

SEARS PROTECTION COMPANY

    10/15/18    18-23558      36-4471250  
23.   

SEARS PROTECTION COMPANY (PR) INC.

    10/15/18    18-23559      66-0704861  
24.   

SEARS ROEBUCK ACCEPTANCE CORP.

    10/15/18    18-23560      51-0080535  
25.   

SR-ROVER DE PUERTO RICO, LLC (f/k/a SEARS, ROEBUCK DE PUERTO RICO, INC.)

    10/15/18    18-23561      66-0233626  
26.   

SYW RELAY LLC

    10/15/18    18-23562      35-2561870  
27.   

WALLY LABS LLC

    10/15/18    18-23563      None  
28.   

BIG BEAVER OF FLORIDA DEVELOPMENT, LLC

    10/15/18    18-23564      None  
29.   

CALIFORNIA BUILDER APPLIANCES, INC.

    10/15/18    18-23565      68-0406327  
30.   

FLORIDA BUILDER APPLIANCES, INC.

    10/15/18    18-23566      36-3619133  
31.   

KBL HOLDING INC.

    10/15/18    18-23567      26-0031295  
32.   

KLC, INC.

    10/15/18    18-23568      75-2490839  
33.   

SEARS PROTECTION COMPANY (FLORIDA), LLC

    10/15/18    18-23569      20-0224239  
34.   

KMART OF WASHINGTON LLC

    10/15/18    18-23570      61-1448898  
35.   

KMART STORES OF ILLINOIS LLC

    10/15/18    18-23571      61-1448897  
36.   

KMART STORES OF TEXAS LLC

    10/15/18    18-23572      61-1448915  
37.   

MYGOFER LLC

    10/15/18    18-23573      26-4005531  
38.   

ROVER BRANDS BUSINESS UNIT, LLC

    10/15/18    18-23574      42-1564658  
39.   

SEARS HOLDINGS PUBLISHING COMPANY, LLC

    10/15/18    18-23575      26-0075554  
40.   

KMART OF MICHIGAN, INC.

    10/15/18    18-23576      38-3551696  
41.   

SHC DESERT SPRINGS, LLC

    10/15/18    18-23577      None  
42.   

SOE, INC.

    10/15/18    18-23578      83-0399616  
43.   

STARWEST, LLC

    10/15/18    18-23579      37-1495379  
44.   

STI MERCHANDISING, INC.

    10/15/18    18-23580      38-2760188  
45.   

TROY COOLIDGE NO. 13, LLC

    10/15/18    18-23581      None  
46.   

BLUELIGHT.COM, INC.

    10/15/18    18-23582      77-0527034  
47.   

SEARS BRANDS, L.L.C.

    10/15/18    18-23583      42-1564664  
48.   

SEARS BUYING SERVICES, INC.

    10/15/18    18-23584      36-3256533  
49.   

KMART.COM LLC

    10/15/18    18-23585      77-0529022  
50.   

SEARS BRANDS MANAGEMENT CORPORATION

    10/15/18    18-23586      36-2555365  
51.   

SHC LICENSED BUSINESS LLC

    10/18/18    18-23616      37-1783718  
52.   

SHC PROMOTIONS LLC

    10/22/18    18-23630      26-4209626  
53.   

SRE HOLDING CORPORATION

    1/7/19    19-22031      46-4344816  

 

Notes to MOR

PAGE 2 OF 17

In re: SEARS HOLDINGS CORPORATION, et al.    Case No.  

18-23538 (RDD)            

(Jointly Administered)    Reporting Period:  

8/4/19 - 8/31/19

MOR-1a    Federal Tax I.D. No.  

20-1920798

(in US Dollars)     
(Unaudited)     

 

SCHEDULE OF RECEIPTS

 

#   

DEBTOR ENTITY NAME

    BANKRUPTCY
CASE NUMBER		    NET CASH
RECEIPTS (a)		  
1.    SEARS, ROEBUCK AND CO.    18-23537    $ 718,525  
2.    SEARS HOLDINGS CORPORATION    18-23538      —    
3.    KMART HOLDING CORPORATION    18-23539      —    
4.    KMART OPERATIONS LLC    18-23540      —    
5.    SEARS OPERATIONS LLC    18-23541      —    
6.    SERVICELIVE, INC.    18-23542      —    
7.    A&E FACTORY SERVICE, LLC    18-23543      —    
8.    A&E HOME DELIVERY, LLC    18-23544      —    
9.    A&E LAWN & GARDEN, LLC    18-23545      —    
10.    A&E SIGNATURE SERVICE, LLC    18-23546      —    
11.    FBA HOLDINGS INC.    18-23547      —    
12.    INNOVEL SOLUTIONS, INC.    18-23548      —    
13.    KMART CORPORATION    18-23549      —    
14.    MAXSERV, INC.    18-23550      —    
15.    PRIVATE BRANDS, LTD.    18-23551      —    
16.    SEARS DEVELOPMENT CO.    18-23552      —    
17.    SEARS HOLDINGS MANAGEMENT CORPORATION    18-23553      —    
18.    SEARS HOME & BUSINESS FRANCHISES, INC.    18-23554      —    
19.    SEARS HOME IMPROVEMENT PRODUCTS, INC    18-23555      —    
20.    SEARS INSURANCE SERVICES, L.L.C.    18-23556      —    
21.    SEARS PROCUREMENT SERVICES, INC.    18-23557      —    
22.    SEARS PROTECTION COMPANY    18-23558      —    
23.    SEARS PROTECTION COMPANY (PR) INC.    18-23559      —    
24.    SEARS ROEBUCK ACCEPTANCE CORP.    18-23560      —    
25.    SR-ROVER DE PUERTO RICO, LLC (f/k/a SEARS, ROEBUCK DE PUERTO RICO, INC.)    18-23561      —    
26.    SYW RELAY LLC    18-23562      —    
27.    WALLY LABS LLC    18-23563      —    
28.    BIG BEAVER OF FLORIDA DEVELOPMENT, LLC    18-23564      —    
29.    CALIFORNIA BUILDER APPLIANCES, INC.    18-23565      —    
30.    FLORIDA BUILDER APPLIANCES, INC.    18-23566      —    
31.    KBL HOLDING INC.    18-23567      —    
32.    KLC, INC.    18-23568      —    

 

MOR-1a

PAGE 3 OF 17

  33.      SEARS PROTECTION COMPANY (FLORIDA), LLC      18-23569        —    
  34.      KMART OF WASHINGTON LLC      18-23570        —    
  35.      KMART STORES OF ILLINOIS LLC      18-23571        —    
  36.      KMART STORES OF TEXAS LLC      18-23572        —    
  37.      MYGOFER LLC      18-23573        —    
  38.      ROVER BRANDS BUSINESS UNIT, LLC      18-23574        —    
  39.      SEARS HOLDINGS PUBLISHING COMPANY, LLC      18-23575        —    
  40.      KMART OF MICHIGAN, INC.      18-23576        —    
  41.      SHC DESERT SPRINGS, LLC      18-23577        —    
  42.      SOE, INC.      18-23578        —    
  43.      STARWEST, LLC      18-23579        —    
  44.      STI MERCHANDISING, INC.      18-23580        —    
  45.      TROY COOLIDGE NO. 13, LLC      18-23581        —    
  46.      BLUELIGHT.COM, INC.      18-23582        —    
  47.      SEARS BRANDS, L.L.C.      18-23583        —    
  48.      SEARS BUYING SERVICES, INC.      18-23584        —    
  49.      KMART.COM LLC      18-23585        —    
  50.      SEARS BRANDS MANAGEMENT CORPORATION      18-23586        —    
  51.      SHC LICENSED BUSINESS LLC      18-23616        —    
  52.      SHC PROMOTIONS LLC      18-23630        —    
  53.      SRE HOLDING CORPORATION      19-22031        —    
        

 

 

  
   TOTAL       $ 718,525  
        

 

 

  

Footnote:

 

(a)

The net cash receipts represent cash received by each Debtor’s assigned bank account and excludes the “flow through” disbursements used to pay the Buyer’s accounts payable and payroll.

 

MOR-1a

PAGE 4 OF 17

In re: SEARS HOLDINGS CORPORATION, et al.    Case No.  

18-23538 (RDD)            

(Jointly Administered)    Reporting Period:  

8/4/19 - 8/31/19

MOR-1b    Federal Tax I.D. No.  

20-1920798

(in US Dollars)     
(Unaudited)     

 

SCHEDULE OF DISBURSEMENTS

          BANKRUPTCY    NET CASH
DISBURSEMENTS		      PLUS: ESTATE
DISBURSEMENTS
MADE BY
OUTSIDE
SOURCES		      TOTAL
DISBURSEMENTS
(FOR QUARTERLY		         
#       

DEBTOR ENTITY NAME

    CASE NUMBER    (a)      (i.e. escrow accounts)      FEE PURPOSES)      F/N  
1.    SEARS, ROEBUCK AND CO.    18-23537    $ 566,578        —        $ 566,578     
2.    SEARS HOLDINGS CORPORATION    18-23538      49,997        9,600,405        9,650,402        (b)  
3.    KMART HOLDING CORPORATION    18-23539      —          —          —       
4.    KMART OPERATIONS LLC    18-23540      32,989        —          32,989     
5.    SEARS OPERATIONS LLC    18-23541      69,816        —          69,816     
6.    SERVICELIVE, INC.    18-23542      —          —          —       
7.    A&E FACTORY SERVICE, LLC    18-23543      —          —          —       
8.    A&E HOME DELIVERY, LLC    18-23544      —          —          —       
9.    A&E LAWN & GARDEN, LLC    18-23545      —          —          —       
10.    A&E SIGNATURE SERVICE, LLC    18-23546      —          —          —       
11.    FBA HOLDINGS INC.    18-23547      —          —          —       
12.    INNOVEL SOLUTIONS, INC.    18-23548      1,694        —          1,694     
13.    KMART CORPORATION    18-23549      133,194        —          133,194     
14.    MAXSERV, INC.    18-23550      —          —          —       
15.    PRIVATE BRANDS, LTD.    18-23551      —          —          —       
16.    SEARS DEVELOPMENT CO.    18-23552      —          —          —       
17.    SEARS HOLDINGS MANAGEMENT CORPORATION    18-23553      21,719        —          21,719     
18.    SEARS HOME & BUSINESS FRANCHISES, INC.    18-23554      —          —          —       
19.    SEARS HOME IMPROVEMENT PRODUCTS, INC    18-23555      —          —          —       
20.    SEARS INSURANCE SERVICES, L.L.C.    18-23556      —          —          —       
21.    SEARS PROCUREMENT SERVICES, INC.    18-23557      —          —          —       
22.    SEARS PROTECTION COMPANY    18-23558      16,302        —          16,302     
23.    SEARS PROTECTION COMPANY (PR) INC.    18-23559      —          —          —       
24.    SEARS ROEBUCK ACCEPTANCE CORP.    18-23560      —          —          —       
25.    SR-ROVER DE PUERTO RICO, LLC (f/k/a SEARS, ROEBUCK DE PUERTO RICO, INC.)    18-23561      —          —          —       
26.    SYW RELAY LLC    18-23562      —          —          —       
27.    WALLY LABS LLC    18-23563      —          —          —       
28.    BIG BEAVER OF FLORIDA DEVELOPMENT, LLC    18-23564      —          —          —       
29.    CALIFORNIA BUILDER APPLIANCES, INC.    18-23565      —          —          —       

 

MOR-1b

PAGE 5 OF 17

30.    FLORIDA BUILDER APPLIANCES, INC.      18-23566        —          —          —       
31.    KBL HOLDING INC.      18-23567        —          —          —       
32.    KLC, INC.      18-23568        —          —          —       
33.    SEARS PROTECTION COMPANY (FLORIDA), LLC      18-23569        —          —          —       
34.    KMART OF WASHINGTON LLC      18-23570        67        —          67     
35.    KMART STORES OF ILLINOIS LLC      18-23571        616        —          616     
36.    KMART STORES OF TEXAS LLC      18-23572        —          —          —       
37.    MYGOFER LLC      18-23573        —          —          —       
38.    ROVER BRANDS BUSINESS UNIT, LLC      18-23574        —          —          —       
39.    SEARS HOLDINGS PUBLISHING COMPANY, LLC      18-23575        —          —          —       
40.    KMART OF MICHIGAN, INC.      18-23576        —          —          —       
41.    SHC DESERT SPRINGS, LLC      18-23577        —          —          —       
42.    SOE, INC.      18-23578        2,402        —          2,402     
43.    STARWEST, LLC      18-23579        —          —          —       
44.    STI MERCHANDISING, INC.      18-23580        —          —          —       
45.    TROY COOLIDGE NO. 13, LLC      18-23581        —          —          —       
46.    BLUELIGHT.COM, INC.      18-23582        —          —          —       
47.    SEARS BRANDS, L.L.C.      18-23583        —          —          —       
48.    SEARS BUYING SERVICES, INC.      18-23584        —          —          —       
49.    KMART.COM LLC      18-23585        —          —          —       
50.    SEARS BRANDS MANAGEMENT CORPORATION      18-23586        —          —          —       
51.    SHC LICENSED BUSINESS LLC      18-23616        —          —          —       
52.    SHC PROMOTIONS LLC      18-23630        —          —          —       
53.    SRE HOLDING CORPORATION      19-22031        —          —          —       
        

 

 

     

 

 

     

 

 

     

 

 

  
   TOTAL       $ 895,375      $ 9,600,405      $ 10,495,780     
        

 

 

     

 

 

     

 

 

     

 

 

  

Footnote(s):

 

(a)

The net cash disbursements represent cash disbursed by the Debtor entity excluding disbursements made on behalf of other Debtor entities, which are reflected on the accounts of the Debtors on whose behalf they are made. “Flow through” disbursements used to pay the Buyer’s accounts payable and payroll are excluded.

(b)

Sears Holdings Corporation (18-23538) disbursements made by outside sources represent professional fee payments.

 

MOR-1b

PAGE 6 OF 17

In re: SEARS HOLDINGS CORPORATION, et al.    Case No.  

18-23538 (RDD)            

(Jointly Administered)    Reporting Period:  

8/4/19 - 8/31/19

MOR-1b.1    Federal Tax I.D. No.  

20-1920798

(in US Dollars)     
(Unaudited)     

 

QTD SUMMARY OF DISBURSEMENTS BY DEBTOR

 

                 Q3’19  
          BANKRUPTCY      TOTAL
DISBURSEMENTS
(FOR QUARTERLY
FEE PURPOSES)		      TOTAL
DISBURSEMENTS
(FOR QUARTERLY
FEE PURPOSES)		      QTD TOTAL
DISBURSEMENTS
(FOR QUARTERLY
FEE PURPOSES)		  
#       

DEBTOR ENTITY NAME

    CASE NUMBER      JUL. 7 - AUG. 3, 2019      AUG. 4 - 31, 2019      JUL. 7 - AUG. 31, 2019  
1.    SEARS, ROEBUCK AND CO.      18-23537      $ 848,097      $ 566,578      $ 1,414,676  
2.    SEARS HOLDINGS CORPORATION      18-23538        37,199,118        9,650,402        46,849,520  
3.    KMART HOLDING CORPORATION      18-23539        —          —          —    
4.    KMART OPERATIONS LLC      18-23540        2,738        32,989        35,727  
5.    SEARS OPERATIONS LLC      18-23541        80,732        69,816        150,548  
6.    SERVICELIVE, INC.      18-23542        —          —          —    
7.    A&E FACTORY SERVICE, LLC      18-23543        2,761        —          2,761  
8.    A&E HOME DELIVERY, LLC      18-23544        —          —          —    
9.    A&E LAWN & GARDEN, LLC      18-23545        —          —          —    
10.    A&E SIGNATURE SERVICE, LLC      18-23546        —          —          —    
11.    FBA HOLDINGS INC.      18-23547        —          —          —    
12.    INNOVEL SOLUTIONS, INC.      18-23548        239,135        1,694        240,829  
13.    KMART CORPORATION      18-23549        59,001        133,194        192,195  
14.    MAXSERV, INC.      18-23550        —          —          —    
15.    PRIVATE BRANDS, LTD.      18-23551        —          —          —    
16.    SEARS DEVELOPMENT CO.      18-23552        —          —          —    
17.    SEARS HOLDINGS MANAGEMENT CORPORATION      18-23553        18,654        21,719        40,373  
18.    SEARS HOME & BUSINESS FRANCHISES, INC.      18-23554        —          —          —    
19.    SEARS HOME IMPROVEMENT PRODUCTS, INC      18-23555        68        —          68  
20.    SEARS INSURANCE SERVICES, L.L.C.      18-23556        —          —          —    
21.    SEARS PROCUREMENT SERVICES, INC.      18-23557        —          —          —    
22.    SEARS PROTECTION COMPANY      18-23558        200        16,302        16,502  
23.    SEARS PROTECTION COMPANY (PR) INC.      18-23559        —          —          —    
24.    SEARS ROEBUCK ACCEPTANCE CORP.      18-23560        —          —          —    
25.    SR-ROVER DE PUERTO RICO, LLC (f/k/a SEARS, ROEBUCK DE PUERTO RICO, INC.)      18-23561        —          —          —    
26.    SYW RELAY LLC      18-23562        —          —          —    
27.    WALLY LABS LLC      18-23563        —          —          —    
28.    BIG BEAVER OF FLORIDA DEVELOPMENT, LLC      18-23564        —          —          —    
29.    CALIFORNIA BUILDER APPLIANCES, INC.      18-23565        13,290        —          13,290  
30.    FLORIDA BUILDER APPLIANCES, INC.      18-23566        —          —          —    
31.    KBL HOLDING INC.      18-23567        —          —          —    
32.    KLC, INC.      18-23568        —          —          —    
33.    SEARS PROTECTION COMPANY (FLORIDA), LLC      18-23569        —          —          —    
34.    KMART OF WASHINGTON LLC      18-23570        74        67        141  
35.    KMART STORES OF ILLINOIS LLC      18-23571        512        616        1,128  
36.    KMART STORES OF TEXAS LLC      18-23572        —          —          —    
37.    MYGOFER LLC      18-23573        —          —          —    
38.    ROVER BRANDS BUSINESS UNIT, LLC      18-23574        —          —          —    
39.    SEARS HOLDINGS PUBLISHING COMPANY, LLC      18-23575        —          —          —    
40.    KMART OF MICHIGAN, INC.      18-23576        22        —          22  
41.    SHC DESERT SPRINGS, LLC      18-23577        —          —          —    
42.    SOE, INC.      18-23578        —          2,402        2,402  
43.    STARWEST, LLC      18-23579        —          —          —    
44.    STI MERCHANDISING, INC.      18-23580        —          —          —    
45.    TROY COOLIDGE NO. 13, LLC      18-23581        —          —          —    
46.    BLUELIGHT.COM, INC.      18-23582        —          —          —    
47.    SEARS BRANDS, L.L.C.      18-23583        —          —          —    
48.    SEARS BUYING SERVICES, INC.      18-23584        —          —          —    
49.    KMART.COM LLC      18-23585        —          —          —    
50.    SEARS BRANDS MANAGEMENT CORPORATION      18-23586        —          —          —    
51.    SHC LICENSED BUSINESS LLC      18-23616        —          —          —    
52.    SHC PROMOTIONS LLC      18-23630        —          —          —    
53.    SRE HOLDING CORPORATION      19-22031        —          —          —    
        

 

 

     

 

 

     

 

 

  
   Total       $ 38,464,403      $ 10,495,780      $ 48,960,183  
        

 

 

     

 

 

     

 

 

  

 

MOR-1b.1

PAGE 7 OF 17

In re: SEARS HOLDINGS CORPORATION, et al.    Case No.  

18-23538 (RDD)            

(Jointly Administered)    Reporting Period:  

8/4/19 - 8/31/19

MOR-1c.1    Federal Tax I.D. No.  

20-1920798

(in US Dollars)     
(Unaudited)     

 

BANK ACCOUNT INFORMATION

 

#       

LEGAL ENTITY

    CASE
NUMBER		   

BANK

    LAST 4
DIGITS
ACCOUNT #		     

BANK
BALANCE

   

F/N

Debtor Bank Accounts Opened Pre-Closing (Open)

            
1.    Kmart Corporation    18-23549    Bank of America, N.A.      3816      $6,548    (a)
2.    Kmart Corporation    18-23549    Bank of America, N.A.      5450      10,000,000    (b)
3.    Kmart Corporation    18-23549    Bank of America, N.A.      8978      3,393,612    (b)
4.    Sears, Roebuck and Co.    18-23537    Bank of America, N.A.      6570      39,006,181    (b)
5.    Sears, Roebuck and Co.    18-23537    Bank of America, N.A.      8279      490,835    (b)
6.    Sears, Roebuck and Co.    18-23537    Bank of America, N.A.      8965      52,053,734    (b)
7.    Sears, Roebuck and Co.    18-23537    Bank of America, N.A.      9540      —        (b)

Debtor Bank Accounts Opened Post-Closing

            
8.    Kmart Corporation    18-23549    Bank of America, N.A.      7257      —        (c)
9.    Kmart Corporation    18-23549    Bank of America, N.A.      7260      223,204    (c)
10.    Kmart Corporation    18-23549    Bank of America, N.A.      7338      —        (c)
11.    Kmart Corporation    18-23549    Bank of America, N.A.      7341      —        (c)
12.    Kmart Corporation    18-23549    Bank of America, N.A.      8751      —        (c)
13.    Kmart Corporation    18-23549    Bank of America, N.A.      8968      —        (c)
14.    Kmart Corporation    18-23549    Bank of America, N.A.      8971      —        (c)
15.    Kmart Corporation    18-23549    Bank of America, N.A.      8984      —        (c)
16.    Sears Holdings Corporation    18-23538    Axos Bank      0143      926,302    (c)
17.    Sears Holdings Management Corporation    18-23553    Bank of America, N.A.      7354      —        (c)
18.    Sears Holdings Management Corporation    18-23553    Bank of America, N.A.      7367      —        (c)
19.    Sears Roebuck Acceptance Corp.    18-23560    Bank of America, N.A.      8036      535    (c)
20.    Sears, Roebuck and Co.    18-23537    Bank of America, N.A.      7231      —        (b)
21.    Sears, Roebuck and Co.    18-23537    Bank of America, N.A.      7244      1,972,296    (c)
22.    Sears, Roebuck and Co.    18-23537    Bank of America, N.A.      7312      —        (c)
23.    Sears, Roebuck and Co.    18-23537    Bank of America, N.A.      7325      —        (c)
24.    Sears, Roebuck and Co.    18-23537    Bank of America, N.A.      8764      —        (c)
25.    Sears, Roebuck and Co.    18-23537    Bank of America, N.A.      8997      221,504    (c)
26.    Sears, Roebuck and Co.    18-23537    Bank of America, N.A.      9006      —        (c)
27.    Sears, Roebuck and Co.    18-23537    Bank of America, N.A.      9019      —        (c)

Debtor Bank Accounts Opened Pre-Closing (Closed)

            
28.    Kmart Corporation    18-23549    BancorpSouth      3945      —        (d)
29.    Kmart Corporation    18-23549    Bank of America, N.A.      2637      N/A    (d)
30.    Kmart Corporation    18-23549    Bank of America, N.A.      3428      N/A    (d)
31.    Kmart Corporation    18-23549    Bank of America, N.A.      3884      N/A    (d)
32.    Kmart Corporation    18-23549    Bank of America, N.A.      4067      N/A    (d)
33.    Kmart Corporation    18-23549    Bank of America, N.A.      4339      N/A    (d)
34.    Kmart Corporation    18-23549    Bank of America, N.A.      6688      N/A    (d)
35.    Kmart Corporation    18-23549    Bank of America, N.A.      8793      N/A    (d)
36.    Kmart Corporation    18-23549    Bank of America, N.A.      8832      N/A    (d)
37.    Kmart Corporation    18-23549    Bank Of Oklahoma      5769      —        (d)
38.    Kmart Corporation    18-23549    Capital One Bank      9632      —        (d)
39.    Kmart Corporation    18-23549    Cherokee State Bank      0494      —        (d)
40.    Kmart Corporation    18-23549    Fidelity Bank      2180      —        (d)
41.    Kmart Corporation    18-23549    First and Farmers Bank      0543      —        (d)
42.    Kmart Corporation    18-23549    First Interstate Bank of Riverton      1274      —        (d)
43.    Kmart Corporation    18-23549    First National Bank      0001      —        (d)
44.    Kmart Corporation    18-23549    First National Bank of Grayson      4081      —        (d)
45.    Kmart Corporation    18-23549    First Tennessee      0555      —        (d)
46.    Kmart Corporation    18-23549    Hilltop National Bank      4003      —        (d)
47.    Kmart Corporation    18-23549    M&T Bank      2880      —        (d)
48.    Kmart Corporation    18-23549    NorState Federal Credit Union      6752      —        (d)
49.    Kmart Corporation    18-23549    Old National Bank      5501      —        (d)
50.    Kmart Corporation    18-23549    PNC Bank      5929      —        (d)
51.    Kmart Corporation    18-23549    United Missouri Bank      3100      —        (d)
52.    Kmart Corporation    18-23549    United Missouri Bank      4642      —        (d)
53.    Kmart Corporation    18-23549    Wells Fargo      5915      —        (d)
54.    Kmart Corporation    18-23549    Zions National Bank      6778      —        (d)
55.    Sears, Roebuck and Co.    18-23537    Bank of America, N.A.      0422      N/A    (d)
56.    Sears, Roebuck and Co.    18-23537    Bank of America, N.A.      1496      N/A    (d)
57.    Sears, Roebuck and Co.    18-23537    Bank of America, N.A.      1561      N/A    (d)
58.    Sears, Roebuck and Co.    18-23537    Bank of America, N.A.      1579      N/A    (d)
59.    Sears, Roebuck and Co.    18-23537    Bank of America, N.A.      2154      N/A    (d)
60.    Sears, Roebuck and Co.    18-23537    Bank of America, N.A.      2439      N/A    (d)
61.    Sears, Roebuck and Co.    18-23537    Bank of America, N.A.      2648      N/A    (d)
62.    Sears, Roebuck and Co.    18-23537    Bank of America, N.A.      5505      N/A    (d)
63.    Sears, Roebuck and Co.    18-23537    Bank of America, N.A.      6350      N/A    (d)
64.    Sears, Roebuck and Co.    18-23537    Bank of America, N.A.      6388      N/A    (d)
65.    Sears, Roebuck and Co.    18-23537    Bank of America, N.A.      8492      N/A    (d)
66.    Sears, Roebuck and Co.    18-23537    Bank of America, N.A.      8501      N/A    (d)
67.    Sears, Roebuck and Co.    18-23537    PNC Bank      2095      —        (d)
68.    Sears, Roebuck and Co.    18-23537    Regions Bank      3439      —        (d)
69.    Sears, Roebuck and Co.    18-23537    Regions Bank      5722      —        (d)
70.    Sears, Roebuck and Co.    18-23537    Wells Fargo      5907      —        (d)

 

MOR-1c.1

PAGE 8 OF 17

In re: SEARS HOLDINGS CORPORATION, et al.    Case No.  

18-23538 (RDD)            

(Jointly Administered)    Reporting Period:  

8/4/19 - 8/31/19

MOR-1c.2    Federal Tax I.D. No.  

20-1920798

(in US Dollars)     
(Unaudited)     

 

BANK ACCOUNT INFORMATION (CON’T)

Footnote(s):

 

(a)

The bank statement(s) are for the period from 8/3/19 through 8/30/19.

(b)

The bank statement(s) are for the period from 8/1/19 through 8/30/19.

(c)

The bank statement(s) are for the period from 8/1/19 through 9/2/19.

(d)

The bank account(s) have been closed.

 

MOR-1c.2

PAGE 9 OF 17

In re: SEARS HOLDINGS CORPORATION, et al.    Case No.  

18-23538 (RDD)            

(Jointly Administered)    Reporting Period:  

8/4/19 - 8/31/19

MOR-1c.3

    Federal Tax I.D. No.  

20-1920798

(in US Dollars)     
(Unaudited)     

 

BANK ACCOUNT INFORMATION

 

#       

LEGAL ENTITY

    CASE
NUMBER		     

BANK

    LAST 4
DIGITS
ACCOUNT #		  

Bank Accounts Transferred to Buyer at Closing

        
1.   

California Builder Appliances, Inc.

      18-23565     

Bank of America, N.A.

      6850  
2.   

Florida Builder Appliances, Inc.

      18-23566     

Bank of America, N.A.

      7770  
3.   

Innovel Solutions, Inc.

      18-23548     

Bank of America, N.A.

      3618  
4.   

Kmart Corporation

      18-23549     

Banco Popular

      0247  
5.   

Kmart Corporation

      18-23549     

Banco Popular

      6180  
6.   

Kmart Corporation

      18-23549     

Bank of America, N.A.

      0136  
7.   

Kmart Corporation

      18-23549     

Bank of America, N.A.

      0508  
8.   

Kmart Corporation

      18-23549     

Bank of America, N.A.

      0986  
9.   

Kmart Corporation

      18-23549     

Bank of America, N.A.

      0994  
10.   

Kmart Corporation

      18-23549     

Bank of America, N.A.

      1000  
11.   

Kmart Corporation

      18-23549     

Bank of America, N.A.

      2102  
12.   

Kmart Corporation

      18-23549     

Bank of America, N.A.

      3295  
13.   

Kmart Corporation

      18-23549     

Bank of America, N.A.

      3531  
14.   

Kmart Corporation

      18-23549     

Bank of America, N.A.

      3896  
15.   

Kmart Corporation

      18-23549     

Bank of America, N.A.

      3929  
16.   

Kmart Corporation

      18-23549     

Bank of America, N.A.

      4404  
17.   

Kmart Corporation

      18-23549     

Bank of America, N.A.

      6005  
18.   

Kmart Corporation

      18-23549     

Bank of America, N.A.

      6911  
19.   

Kmart Corporation

      18-23549     

Bank of America, N.A.

      7539  
20.   

Kmart Corporation

      18-23549     

Bank of America, N.A.

      7542  
21.   

Kmart Corporation

      18-23549     

Bank of America, N.A.

      7555  
22.   

Kmart Corporation

      18-23549     

Bank of America, N.A.

      7743  
23.   

Kmart Corporation

      18-23549     

Bank of America, N.A.

      7756  
24.   

Kmart Corporation

      18-23549     

Bank of America, N.A.

      7769  
25.   

Kmart Corporation

      18-23549     

Bank of America, N.A.

      7772  
26.   

Kmart Corporation

      18-23549     

Bank of America, N.A.

      7785  
27.   

Kmart Corporation

      18-23549     

Bank of America, N.A.

      7798  
28.   

Kmart Corporation

      18-23549     

Bank of America, N.A.

      7808  
29.   

Kmart Corporation

      18-23549     

Bank of America, N.A.

      7811  
30.   

Kmart Corporation

      18-23549     

Bank of America, N.A.

      7824  
31.   

Kmart Corporation

      18-23549     

Bank of America, N.A.

      7837  
32.   

Kmart Corporation

      18-23549     

Bank of America, N.A.

      7970  
33.   

Kmart Corporation

      18-23549     

BB&T Bank

      8654  
34.   

Kmart Corporation

      18-23549     

Citizens Bank

      7910  
35.   

Kmart Corporation

      18-23549     

First Bank and Trust Company

      9130  
36.   

Kmart Corporation

      18-23549     

First Hawaiian Bank

      0940  
37.   

Kmart Corporation

      18-23549     

First Interstate Bank of Billings NA

      2277  
38.   

Kmart Corporation

      18-23549     

First Interstate Bank of Billings NA

      3730  
39.   

Kmart Corporation

      18-23549     

First Security

      7014  
40.   

Kmart Corporation

      18-23549     

First Security

      9005  
41.   

Kmart Corporation

      18-23549     

First State Bank

      6705  
42.   

Kmart Corporation

      18-23549     

Iowa State Bank

      4408  
43.   

Kmart Corporation

      18-23549     

NBT Bank

      0573  
44.   

Kmart Corporation

      18-23549     

PNC Bank

      0169  
45.   

Kmart Corporation

      18-23549     

PNC Bank

      3334  
46.   

Kmart Corporation

      18-23549     

PNC Bank

      9553  
47.   

Kmart Corporation

      18-23549     

Union Bank

      0694  
48.   

Kmart Corporation

      18-23549     

Union Bank

      1583  
49.   

Kmart Corporation

      18-23549     

United Missouri Bank

      0553  
50.   

Kmart Corporation

      18-23549     

Wells Fargo

      0318  
51.   

Sears Holdings Corporation

      18-23538     

Bank of America, N.A.

      4266  
52.   

Sears Holdings Corporation

      18-23538     

Bank of America, N.A.

      6719  
53.   

Sears Holdings Management Corporation

      18-23553     

Bank of America, N.A.

      5426  
54.   

Sears Holdings Management Corporation

      18-23553     

Bank of America, N.A.

      6338  
55.   

Sears Holdings Management Corporation

      18-23553     

Bank of America, N.A.

      6722  
56.   

Sears Holdings Management Corporation

      18-23553     

KeyBank

      1056  
57.   

Sears Protection Company

      18-23558     

Bank of America, N.A.

      4583  
58.   

Sears Protection Company (Florida), LLC

      18-23569     

Bank of America, N.A.

      4596  
59.   

Sears Protection Company (PR), Inc.

      18-23561     

Banco Popular

      1580  
60.   

Sears Protection Company (PR), Inc.

      18-23559     

Banco Popular

      5678  
61.   

Sears Protection Company (PR), Inc.

      18-23561     

Banco Popular

      7665  
62.   

Sears Roebuck Acceptance Corp.

      18-23560     

Bank of America, N.A.

      0955  

 

MOR-1c.3

PAGE 10 OF 17

In re: SEARS HOLDINGS CORPORATION, et al.    Case No.  

18-23538 (RDD)            

(Jointly Administered)    Reporting Period:  

8/4/19 - 8/31/19

MOR-1c.3    Federal Tax I.D. No.  

20-1920798

(in US Dollars)     
(Unaudited)     

BANK ACCOUNT INFORMATION

 

#       

LEGAL ENTITY

    CASE
NUMBER		   

BANK

    LAST 4
DIGITS
ACCOUNT #		  
63.   

Sears Roebuck Acceptance Corp.

    18-23560   

Bank of America, N.A.

      6815  
64.   

Sears Roebuck Acceptance Corp.

    18-23560   

Bank of America, N.A.

      9512  
65.   

Sears, Roebuck and Co.

    18-23537   

Bank of America, N.A.

      0149  
66.   

Sears, Roebuck and Co.

    18-23537   

Bank of America, N.A.

      0556  
67.   

Sears, Roebuck and Co.

    18-23537   

Bank of America, N.A.

      0895  
68.   

Sears, Roebuck and Co.

    18-23537   

Bank of America, N.A.

      0903  
69.   

Sears, Roebuck and Co.

    18-23537   

Bank of America, N.A.

      0911  
70.   

Sears, Roebuck and Co.

    18-23537   

Bank of America, N.A.

      0929  
71.   

Sears, Roebuck and Co.

    18-23537   

Bank of America, N.A.

      0945  
72.   

Sears, Roebuck and Co.

    18-23537   

Bank of America, N.A.

      0952  
73.   

Sears, Roebuck and Co.

    18-23555   

Bank of America, N.A.

      0978  
74.   

Sears, Roebuck and Co.

    18-23537   

Bank of America, N.A.

      1451  
75.   

Sears, Roebuck and Co.

    18-23537   

Bank of America, N.A.

      1595  
76.   

Sears, Roebuck and Co.

    18-23537   

Bank of America, N.A.

      3107  
77.   

Sears, Roebuck and Co.

    18-23537   

Bank of America, N.A.

      3266  
78.   

Sears, Roebuck and Co.

    18-23537   

Bank of America, N.A.

      4120  
79.   

Sears, Roebuck and Co.

    18-23537   

Bank of America, N.A.

      4205  
80.   

Sears, Roebuck and Co.

    18-23537   

Bank of America, N.A.

      4394  
81.   

Sears, Roebuck and Co.

    18-23537   

Bank of America, N.A.

      5261  
82.   

Sears, Roebuck and Co.

    18-23537   

Bank of America, N.A.

      5468  
83.   

Sears, Roebuck and Co.

    18-23537   

Bank of America, N.A.

      5885  
84.   

Sears, Roebuck and Co.

    18-23537   

Bank of America, N.A.

      6654  
85.   

Sears, Roebuck and Co.

    18-23537   

Bank of America, N.A.

      6667  
86.   

Sears, Roebuck and Co.

    18-23537   

Bank of America, N.A.

      7607  
87.   

Sears, Roebuck and Co.

    18-23537   

Bank of America, N.A.

      7776  
88.   

Sears, Roebuck and Co.

    18-23537   

Bank of America, N.A.

      7802  
89.   

Sears, Roebuck and Co.

    18-23537   

Bank of America, N.A.

      7828  
90.   

Sears, Roebuck and Co.

    18-23537   

Bank of America, N.A.

      7831  
91.   

Sears, Roebuck and Co.

    18-23537   

Bank of America, N.A.

      7844  
92.   

Sears, Roebuck and Co.

    18-23537   

Bank of America, N.A.

      7857  
93.   

Sears, Roebuck and Co.

    18-23537   

Bank of America, N.A.

      7969  
94.   

Sears, Roebuck and Co.

    18-23537   

Bank of America, N.A.

      7972  
95.   

Sears, Roebuck and Co.

    18-23537   

Bank of America, N.A.

      8855  
96.   

Sears, Roebuck and Co.

    18-23537   

Bank of America, N.A.

      8868  
97.   

Sears, Roebuck and Co.

    18-23537   

Bank of America, N.A.

      8871  
98.   

Sears, Roebuck and Co.

    18-23537   

Bank of America, N.A.

      8884  
99.   

Sears, Roebuck and Co.

    18-23537   

Bank of America, N.A.

      8960  
100.   

Sears, Roebuck and Co.

    18-23537   

Bank of America, N.A.

      8973  
101.   

Sears, Roebuck and Co.

    18-23537   

Bank of America, N.A.

      8981  
102.   

Sears, Roebuck and Co.

    18-23537   

Bank of America, N.A.

      8986  
103.   

Sears, Roebuck and Co.

    18-23537   

Bank of America, N.A.

      8994  
104.   

Sears, Roebuck and Co.

    18-23537   

Bank of America, N.A.

      9415  
105.   

Sears, Roebuck and Co.

    18-23537   

Bank of America, N.A.

      9457  
106.   

Sears, Roebuck and Co.

    18-23537   

Bank of America, N.A.

      9939  
107.   

Sears, Roebuck and Co.

    18-23537   

Bank Of Oklahoma

      1048  
108.   

Sears, Roebuck and Co.

    18-23537   

Capital One Bank

      4557  
109.   

Sears, Roebuck and Co.

    18-23537   

Capital One Bank

      9999  
110.   

Sears, Roebuck and Co.

    18-23537   

Citizens Bank

      3397  
111.   

Sears, Roebuck and Co.

    18-23537   

First Hawaiian Bank

      8911  
112.   

Sears, Roebuck and Co.

    18-23537   

First Tennessee

      0003  
113.   

Sears, Roebuck and Co.

    18-23537   

KeyBank

      4236  
114.   

Sears, Roebuck and Co.

    18-23537   

PNC Bank

      2515  
115.   

Sears, Roebuck and Co.

    18-23537   

PNC Bank

      3342  
116.   

Sears, Roebuck and Co.

    18-23537   

PNC Bank

      3424  
117.   

Sears, Roebuck and Co.

    18-23537   

Regions Bank

      5433  
118.   

Sears, Roebuck and Co.

    18-23537   

Union Bank

      0686  
119.   

Sears, Roebuck and Co.

    18-23537   

Union Bank

      4871  
120.   

Sears, Roebuck and Co.

    18-23537   

Wells Fargo

      2397  
121.   

StarWest, LLC

    18-23579   

Bank of America, N.A.

      9396  

 

MOR-1c.3

PAGE 11 OF 17

In re: SEARS HOLDINGS CORPORATION, et al.    Case No.  

18-23538 (RDD)            

(Jointly Administered)    Reporting Period:  

8/4/19 - 8/31/19

MOR-1d    Federal Tax I.D. No.  

20-1920798

(in US Dollars)     
(Unaudited)     

 

SCHEDULE OF RETAINED RESTRUCTURING PROFESSIONAL FEE DISBURSEMENTS & US TRUSTEE FEES

 

PROFESSIONAL

    AMOUNT PAID
DURING THE
REPORTING PERIOD		      CUMULATIVE (a)  

Estate Professionals

      

Weil, Gotshal & Manges LLP

    $ 5,697,423      $ 53,966,671  

M-III Advisory Partners LP

      —          13,958,280  

Wachtell, Lipton, Rosen & Katz

      —          886,018  

Lazard Freres & Co. LLC

      160,000        21,410,423  

Prime Clerk

      300,889        14,710,974  

Deloitte Transactions and Business Analytics LLP

      —          6,674,532  

Deloitte Audit

      7,032        2,443,114  

Deloitte Tax

      —          3,794,131  

A&G Realty Partners LLC

      —          200,000  

Jones Lang Lasalle Americas, Inc.

      —          2,178,017  

McAndrews Held & Malloy LTD

      —          647,257  
  

 

 

     

 

 

  

Total Estate Professionals

      6,165,344        120,869,416  
  

 

 

     

 

 

  

Restructuring Committee Professionals

      

Paul Weiss Rifkind Wharton & Garrison LLP

      1,204,306        19,806,011  

Young Conaway Stargatt & Taylor, LLP

      —          292,146  

Stout Risius Ross

      4,515        195,775  

Evercore

      —          1,257,095  

Alvarez & Marsal North America, LLC

      3,793        4,567,897  
  

 

 

     

 

 

  

Total Restructuring Committee Professionals

      1,212,614        26,118,925  
  

 

 

     

 

 

  

Creditor Committee Professionals

      

Akin Gump Strauss Hauer & Feld LLP

      1,728,049        25,957,310  

Houlihan Lokey

      401,006        9,261,354  

Herrick, Feinstein

      93,392        323,858  

FTI Consulting

      —          8,068,337  
  

 

 

     

 

 

  

Total Creditor Committee Professionals

      2,222,447        43,610,860  
  

 

 

     

 

 

  

Total Retained Professionals

      9,600,405        190,599,202  
  

 

 

     

 

 

  

US Trustee Quarterly Fees

      —          6,189,739  
  

 

 

     

 

 

  

Total Professional and US Trustee Fees

    $ 9,600,405      $ 196,788,940  
  

 

 

     

 

 

  

Footnote:

 

(a)

Represents payments made since the Commencement Date.

 

MOR-1d

PAGE 12 OF 17

In re: SEARS HOLDINGS CORPORATION, et al.    Case No.  

18-23538 (RDD)            

(Jointly Administered)    Reporting Period:  

8/4/19 - 8/31/19

MOR-2    Federal Tax I.D. No.  

20-1920798

(Unaudited)     
    

 

STATEMENT OF OPERATIONS

 

Condensed & Consolidated Income Statement (a)    Reporting  
     Period Ended
August 31, 2019		  
     (in millions)  

REVENUES

   

Services and other

      —  
  

 

 

  

Total revenues

      —  

COSTS AND EXPENSES

   

Cost of sales, buying and occupancy - merchandise sales

      1  
  

 

 

  

Total cost of sales, buying and occupancy

      1  

Selling and administrative

      1  

Gain on sales of assets

      (2 ) 
  

 

 

  

Total costs and expenses

      —  
  

 

 

  

Operating income (loss)

      —  

Reorganization, net

      6  

Interest and investment income (loss)

      2  
  

 

 

  

Income (loss) before income taxes

      8  

Income tax (expense) benefit

      —  
  

 

 

  

NET INCOME

    $ 8  
  

 

 

  

Footnote:

 

(a)

Numbers may not foot due to rounding

 

MOR-2

PAGE 13 OF 17

In re: SEARS HOLDINGS CORPORATION, et al.    Case No.  

18-23538 (RDD)            

(Jointly Administered)    Reporting Period:  

8/4/19 - 8/31/19

MOR-3    Federal Tax I.D. No.  

20-1920798

(Unaudited)     
    

 

BALANCE SHEET

 

Condensed & Consolidated Balance Sheet (a)(b)    As of  
     August 31, 2019  
     (in millions)  

ASSETS

   

Current assets

   

Cash and Cash Equivalents

    $ 6  

Restricted Cash (c)

      110  

Accounts Receivable

      66  

Prepaid Expenses and Other Current Assets

      15  
  

 

 

  

Total Current Assets

      197  

Property and Equipment (net of accumulated depreciation and amortization)

      9  

Other Assets

      16  
  

 

 

  

TOTAL ASSETS

    $ 222  
  

 

 

  

LIABILITIES

   

Current Liabilities

   

Merchandise Payables

    $ 40  

Other Current Liabilities

      28  
  

 

 

  

Total Current Liabilities (Not Subject to Compromise)

      68  

Liabilities Subject to Compromise

      6,508  

Commitments and Contingencies

      —    

DEFICIT

   

Total Deficit

      (6,354 ) 
  

 

 

  

TOTAL LIABILITIES AND DEFICIT

    $ 222  
  

 

 

  

Footnote:

 

(a)

Numbers may not foot due to rounding

(b)

The Debtors continue to evaluate their assets and liabilities, and any adjustments will be reflected in next month’s MOR.

(c)

As of August 30, 2019, the balance in the BCBS Escrow Account was $4.6MM and the Certificate of Deposit with US Bank in Madison, WI related to SPC (PA) Business was $3.4MM. The Certificate of Deposit is a pledged account required by the State of Wisconsin for SPC to do business. The Certificate of Deposit is credited with interest annually.

 

MOR-3

PAGE 14 OF 17

In re: SEARS HOLDINGS CORPORATION, et al.    Case No.  

18-23538 (RDD)            

Debtors    Reporting Period:  

8/4/19 - 8/31/19

MOR-4a, 4b, 4c    Federal Tax I.D. No.  

20-1920798

(in US Dollars)     
    

 

MOR-4a: STATUS OF POST-PETITION TAXES

Subject: Monthly Operating Report Attestation Regarding Post-Petition Taxes

The Debtors, Sears Holdings Corporation., et al., hereby submit this attestation regarding post-petition taxes.

All post-petition taxes for the Debtors, which are not subject to dispute or reconciliation, are current. There are no material post-petition tax disputes or reconciliations.

 

/s/ Mohsin Y. Meghji

Mohsin Y. Meghji
Chief Restructuring Officer
Sears Holdings Corporation, et al.

MOR-4b: SUMMARY OF UNPAID POST-PETITION VENDOR PAYABLES

 

            NUMBER OF DAYS PAST DUE         

DESCRIPTION

    CURRENT      1-30 DAYS      31-60 DAYS      61-90 DAYS      91+ DAYS      TOTAL  

Combined (a)

      —          —          —          —        $ 39,523,081      $ 39,523,081  

Footnote:

 

(a)

The Debtors and the Buyer are currently disputing which party is responsible for certain post-petition payables.

MOR-4c: ACCOUNTS RECEIVABLE AGING

 

DESCRIPTION

    CURRENT      1-30 DAYS      31-60 DAYS      61-90 DAYS      91+ DAYS      TOTAL  

Accounts Receivable, Net (a)

      —          —          —          —        $ 65,610,382      $ 65,610,382  

Footnote:

 

(a)

The Debtors and the Buyer are currently disputing cash and cash proceeds received by the Buyer that the Debtors believe should be transferred to the Debtors’ accounts.

 

MOR-4a, 4b, 4c

PAGE 15 OF 17

In re: SEARS HOLDINGS CORPORATION, et al.    Case No.  

18-23538 (RDD)            

Debtors    Reporting Period:  

8/4/19 - 8/31/19

MOR-5    Federal Tax I.D. No.  

20-1920798

(in US Dollars)     
    

 

PAYMENTS TO INSIDERS (a)

 

INSIDER PAYMENT SUMMARY (FOR THIS PERIOD ONLY)

  

DESCRIPTION

    AMOUNT  

Payments to members of the Restructuring Committee

      —    

Footnote(s):

 

(a)

The payments to insiders include payments by the Debtors to individuals who are currently directors of the Board of Sears Holdings Corporation.

Persons included as “insiders” have been included for informational purposes only. The Debtors do not concede or take any position with respect to: (i) such person’s influence over the control of the Debtors; (ii) the management responsibilities or functions of such individual; (iii) the decision-making or corporate authority of such individual; or (iv) whether such individual could successfully argue that he or she is not an “insider” under applicable law, including, without limitation, the federal securities laws or with respect to any theories of liability or for any other purpose. Further, the inclusion of a party as an “insider” is not an acknowledgement or concession that such party is an “insider” under applicable bankruptcy law.

 

MOR-5

PAGE 16 OF 17

 

In re: SEARS HOLDINGS CORPORATION, et al.    Case No.  

18-23538 (RDD)            

Debtors    Reporting Period:  

8/4/19 - 8/31/19

   Federal Tax I.D. No.  

20-1920798

    
    

 

MOR 6: DEBTOR QUESTIONNAIRE

 

Must be completed each month. If the answer to any of the questions

is “Yes”, provide a detailed explanation of each item. Attach additional sheets if necessary.

  

Yes

  

No

  

Comments

1.   Have any assets been sold or transferred outside the normal course of business this reporting period?     X  
2.   Have any funds been disbursed from any account other than a debtor in possession account this reporting period?     X  
3.   Is the Debtor delinquent in the timely filing of any post-petition tax returns?     X  
4.   Are workers compensation, general liability or other necessary insurance coverages expired or cancelled, or has the debtor received notice of expiration or cancellation of such policies?     X  
5.   Is the Debtor delinquent in paying any insurance premium payment?     X  
6.   Have any payments been made on pre-petition liabilities this reporting period?   X     The Buyer made payments on pre-petition liabilities as part of certain Cure Payments.
7.   Are any post petition receivables (accounts, notes or loans) due from related parties?     X  
8.   Are any post petition payroll taxes past due?     X  
9.   Are any post petition State or Federal income taxes past due?     X  
10.   Are any post petition real estate taxes past due?     X  
11.   Are any other post petition taxes past due?     X  
12.   Have any pre-petition taxes been paid during this reporting period?   X     $2,075 state income taxes and franchise taxes were paid for the 2018 fiscal year which includes pre-petition and post-petition periods. $581 of payroll taxes for the 2016 fiscal year were paid.  
13.   Are any amounts owed to post petition creditors delinquent?   X     As of 7/6/19, there are approximately $40 million in delinquent invoices payable to post petition creditors. This is due to an ongoing dispute between the Debtors’ estates and Buyer as to which entity will pay the creditors.
14.   Are any wage payments past due?     X  
15.   Have any post petition loans been received by the Debtor from any party?     X  
16.   Is the Debtor delinquent in paying any U.S. Trustee fees?     X  
17.   Is the Debtor delinquent with any court ordered payments to attorneys or other professionals?   X     There are Ordinary Course Professionals that are owed postpetition amounts. This is due to an ongoing dispute between the Debtors’ estates and Buyer as to which entity will pay these professionals.
18.   Have the owners or shareholders received any compensation outside of the normal course of business?     X  

 

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