Bloomberg Law
March 20, 2023, 1:40 PM

Justices Turn Down Sears Lender’s Collateral Valuation Fight

Alex Wolf
Alex Wolf

The US Supreme Court declined to review whether a group of Sears Holdings Corp. lenders, including a hedge fund controlled by the department store chain’s former CEO, were entitled to additional recoveries from Sears’ bankrupt estate.

Cyrus Capital Partners LP, a second-lien Sears lender, had hoped to squeeze more money from the remains of the company’s bankrupt estate by challenging methods used to calculate the value of its loan collateral. But the Supreme Court turned down the investment firm’s petition for review in an order issued Monday.

When Sears filed for Chapter 11 in 2018, its debt obligations to Cyrus ...

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