EX-99.2 3 d679707dex992.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: November 4 - December 1, 2018
   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 and SHC Promotions LLC filed their voluntary petitions for relief on October 18, 2018 and October 22, 2018, 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.

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

 

  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.

 

 

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); 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); Sears Brands Business Unit Corporation (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); and Sears Brands Management Corporation (5365). 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: November 4 - December 1, 2018
   Federal Tax I.D. # 20-1920798

 

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. Certain adjusting entries (including, but not limited to, income tax expense and intercompany profit eliminations) are only prepared on a quarterly basis, and therefore any such adjustments included herein are based on information as of November 3, 2018. 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. Finally, the Debtors’ fiscal year end is on February 2, 2019, and their audited consolidated financial statements will be prepared following that date.

This is the first filing of the MOR since the Petition Date. 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 is 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) 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].


In re: Sears Holdings Corporation, et al.    Case No. 18-23538 (RDD)
Debtors    Reporting Period: November 4 - December 1, 2018
   Federal Tax I.D. # 20-1920798

 

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.

 

6.

Payment of Pre-Petition Claims Pursuant to First Day 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, 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.

 

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.


In re: Sears Holdings Corporation, et al.    Case No. 18-23538 (RDD)
Debtors    Reporting Period: November 4 - December 1, 2018
   Federal Tax I.D. # 20-1920798

 

8.

Specific MOR Disclosures.

 

  a.

Notes to MOR-la: The net cash receipts represent cash received by each Debtor assigned bank account.

 

  b.

Notes to MOR-1b: Certain Debtors make disbursements on behalf of other Debtors. The net cash disbursements represents 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.

 

  c.

Notes to MOR-1c: All amounts listed are the bank balances as of the date in the respective footnote on MOR 1-c. 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 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.

 

  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: The Debtors are current on post-petition payables, taking into consideration pending credits and adjustments and disputes that arise in the ordinary course of business.

 

  h.

Notes to MOR-4c: The Debtors’ accounts receivable aging for the November reporting period has not been finalized at the time of the filing of this MOR. The accounts receivable aging for this reporting period will be made available when finalized upon a reasonable request in writing to bankruptcy counsel for the Debtors.

 


UNITED STATES BANKRUPTCY COURT

SOUTHERN DISTRICT OF NEW YORK

 

In re: SEARS HOLDINGS CORPORATION, et al.    Case No. 18-23538 (RDD)
Debtor    Reporting Period: 11/4/18 - 12/1/18
   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

(CON’T)

  X   

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

   MOR-1c   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   

Post Petition Status of Secured Notes

   MOR-6   X   

Debtor Questionnaire

   MOR-7   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/ Robert A. Riecker

   

12/28/18

Signature of Authorized Individual     Date

Robert A. Riecker

   

Member Office of the CEO and Chief Financial Officer

Printed Name of Authorized Individual     Title of Authorized Individual

 


In re: SEARS HOLDINGS CORPORATION, et al.    Case No. 18-23538 (RDD)
(Jointly Administered)    Reporting Period: 11/4/18 - 12/1/18
                        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    087-18-23537    36-1750680
  2.     

SEARS HOLDINGS CORPORATION

   10/15/18    087-18-23538    20-1920798
  3.     

KMART HOLDING CORPORATION

   10/15/18    087-18-23539    32-0073116
  4.     

KMART OPERATIONS LLC

   10/15/18    087-18-23540    32-0456546
  5.     

SEARS OPERATIONS LLC

   10/15/18    087-18-23541    35-2524331
  6.     

SERVICELIVE, INC.

   10/15/18    087-18-23542    36-4616774
  7.     

A&E FACTORY SERVICE, LLC

   10/15/18    087-18-23543    36-4486695
  8.     

A&E HOME DELIVERY, LLC

   10/15/18    087-18-23544    37-1500205
  9.     

A&E LAWN & GARDEN, LLC

   10/15/18    087-18-23545    13-4275028
  10.     

A&E SIGNATURE SERVICE, LLC

   10/15/18    087-18-23546    37-1500204
  11.     

FBA HOLDINGS INC.

   10/15/18    087-18-23547    36-4186537
  12.     

INNOVEL SOLUTIONS, INC.

   10/15/18    087-18-23548    36-1857180
  13.     

KMART CORPORATION

   10/15/18    087-18-23549    38-0729500
  14.     

MAXSERV, INC.

   10/15/18    087-18-23550    74-2707626
  15.     

PRIVATE BRANDS, LTD.

   10/15/18    087-18-23551    55-0544022
  16.     

SEARS DEVELOPMENT CO.

   10/15/18    087-18-23552    36-2476028
  17.     

SEARS HOLDINGS MANAGEMENT CORPORATION

   10/15/18    087-18-23553    20-3592148
  18.     

SEARS HOME & BUSINESS FRANCHISES, INC.

   10/15/18    087-18-23554    98-0126742
  19.     

SEARS HOME IMPROVEMENT PRODUCTS, INC.

   10/15/18    087-18-23555    25-1698591
  20.     

SEARS INSURANCE SERVICES, L.L.C.

   10/15/18    087-18-23556    36-4287182
  21.     

SEARS PROCUREMENT SERVICES, INC.

   10/15/18    087-18-23557    30-0092859
  22.     

SEARS PROTECTION COMPANY

   10/15/18    087-18-23558    36-4471250
  23.     

SEARS PROTECTION COMPANY (PR) INC.

   10/15/18    087-18-23559    66-0704861
  24.     

SEARS ROEBUCK ACCEPTANCE CORP.

   10/15/18    087-18-23560    51-0080535
  25.     

SEARS, ROEBUCK DE PUERTO RICO, INC.

   10/15/18    087-18-23561    66-0233626
  26.     

SYW RELAY LLC

   10/15/18    087-18-23562    35-2561870
  27.     

WALLY LABS LLC

   10/15/18    087-18-23563    None
  28.     

BIG BEAVER OF FLORIDA DEVELOPMENT, LLC

   10/15/18    087-18-23564    None
  29.     

CALIFORNIA BUILDER APPLIANCES, INC.

   10/15/18    087-18-23565    68-0406327
  30.     

FLORIDA BUILDER APPLIANCES, INC.

   10/15/18    087-18-23566    36-3619133
  31.     

KBL HOLDING INC.

   10/15/18    087-18-23567    26-0031295
  32.     

KLC, INC.

   10/15/18    087-18-23568    75-2490839
  33.     

SEARS PROTECTION COMPANY (FLORIDA), LLC

   10/15/18    087-18-23569    20-0224239
  34.     

KMART OF WASHINGTON LLC

   10/15/18    087-18-23570    61-1448898
  35.     

KMART STORES OF ILLINOIS LLC

   10/15/18    087-18-23571    61-1448897
  36.     

KMART STORES OF TEXAS LLC

   10/15/18    087-18-23572    61-1448915
  37.     

MYGOFER LLC

   10/15/18    087-18-23573    26-4005531
  38.     

SEARS BRANDS BUSINESS UNIT CORPORATION

   10/15/18    087-18-23574    42-1564658
  39.     

SEARS HOLDINGS PUBLISHING COMPANY, LLC

   10/15/18    087-18-23575    26-0075554
  40.     

KMART OF MICHIGAN, INC.

   10/15/18    087-18-23576    38-3551696
  41.     

SHC DESERT SPRINGS, LLC

   10/15/18    087-18-23577    None
  42.     

SOE, INC.

   10/15/18    087-18-23578    83-0399616
  43.     

STARWEST, LLC

   10/15/18    087-18-23579    37-1495379
  44.     

STI MERCHANDISING, INC.

   10/15/18    087-18-23580    38-2760188
  45.     

TROY COOLIDGE NO. 13, LLC

   10/15/18    087-18-23581    None
  46.     

BLUELIGHT.COM, INC.

   10/15/18    087-18-23582    77-0527034
  47.     

SEARS BRANDS, L.L.C.

   10/15/18    087-18-23583    42-1564664
  48.     

SEARS BUYING SERVICES, INC.

   10/15/18    087-18-23584    36-3256533
  49.     

KMART.COM LLC

   10/15/18    087-18-23585    77-0529022
  50.     

SEARS BRANDS MANAGEMENT CORPORATION

   10/15/18    087-18-23586    36-2555365
  51.     

SHC LICENSED BUSINESS LLC

   10/18/18    087-18-23616    37-1783718
  52.     

SHC PROMOTIONS LLC

   10/22/18    087-18-23630    26-4209626


In re: SEARS HOLDINGS CORPORATION, et al.    Case No. 18-23538 (RDD)

(Jointly Administered)

MOR-1a

  

Reporting Period: 11/4/18 - 12/1/18

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.      087-18-23537      $ 696,751,215  
  2.      SEARS HOLDINGS CORPORATION      087-18-23538        364,578  
  3.      KMART HOLDING CORPORATION      087-18-23539        —    
  4.      KMART OPERATIONS LLC      087-18-23540        —    
  5.      SEARS OPERATIONS LLC      087-18-23541        —    
  6.      SERVICELIVE, INC.      087-18-23542        147,061  
  7.      A&E FACTORY SERVICE, LLC      087-18-23543        —    
  8.      A&E HOME DELIVERY, LLC      087-18-23544        —    
  9.      A&E LAWN & GARDEN, LLC      087-18-23545        —    
  10.      A&E SIGNATURE SERVICE, LLC      087-18-23546        —    
  11.      FBA HOLDINGS INC.      087-18-23547        —    
  12.      INNOVEL SOLUTIONS, INC.      087-18-23548        3,075,176  
  13.      KMART CORPORATION      087-18-23549        343,966,608  
  14.      MAXSERV, INC.      087-18-23550        —    
  15.      PRIVATE BRANDS, LTD.      087-18-23551        —    
  16.      SEARS DEVELOPMENT CO.      087-18-23552        —    
  17.      SEARS HOLDINGS MANAGEMENT CORPORATION      087-18-23553        33,065,228  
  18.      SEARS HOME & BUSINESS FRANCHISES, INC.      087-18-23554        1,348,727  
  19.      SEARS HOME IMPROVEMENT PRODUCTS, INC      087-18-23555        7,281,686  
  20.      SEARS INSURANCE SERVICES, L.L.C.      087-18-23556        —    
  21.      SEARS PROCUREMENT SERVICES, INC.      087-18-23557        —    
  22.      SEARS PROTECTION COMPANY      087-18-23558        2,840,615  
  23.      SEARS PROTECTION COMPANY (PR) INC.      087-18-23559        —    
  24.      SEARS ROEBUCK ACCEPTANCE CORP.      087-18-23560        178,474,241  
  25.      SEARS, ROEBUCK DE PUERTO RICO, INC.      087-18-23561        —    
  26.      SYW RELAY LLC      087-18-23562        —    
  27.      WALLY LABS LLC      087-18-23563        —    
  28.      BIG BEAVER OF FLORIDA DEVELOPMENT, LLC      087-18-23564        —    
  29.      CALIFORNIA BUILDER APPLIANCES, INC.      087-18-23565        4,247,098  
  30.      FLORIDA BUILDER APPLIANCES, INC.      087-18-23566        8,570,123  
  31.      KBL HOLDING INC.      087-18-23567        —    
  32.      KLC, INC.      087-18-23568        —    
  33.      SEARS PROTECTION COMPANY (FLORIDA), LLC      087-18-23569        172,622  
  34.      KMART OF WASHINGTON LLC      087-18-23570        —    
  35.      KMART STORES OF ILLINOIS LLC      087-18-23571        —    
  36.      KMART STORES OF TEXAS LLC      087-18-23572        —    
  37.      MYGOFER LLC      087-18-23573        —    
  38.      SEARS BRANDS BUSINESS UNIT CORP      087-18-23574        —    
  39.      SEARS HOLDINGS PUBLISHING COMPANY, LLC      087-18-23575        —    
  40.      KMART OF MICHIGAN, INC.      087-18-23576        —    
  41.      SHC DESERT SPRINGS, LLC      087-18-23577        —    
  42.      SOE, INC.      087-18-23578        —    
  43.      STARWEST, LLC      087-18-23579        1,536,279  
  44.      STI MERCHANDISING, INC.      087-18-23580        —    
  45.      TROY COOLIDGE NO. 13, LLC      087-18-23581        —    
  46.      BLUELIGHT.COM, INC.      087-18-23582        —    
  47.      SEARS BRANDS, L.L.C.      087-18-23583        —    
  48.      SEARS BUYING SERVICES, INC.      087-18-23584        —    
  49.      KMART.COM LLC      087-18-23585        —    
  50.      SEARS BRANDS MANAGEMENT CORPORATION      087-18-23586        234,247  
  51.      SHC LICENSED BUSINESS LLC      087-18-23616        —    
  52.     

SHC PROMOTIONS LLC

     087-18-23630        —    
        

 

 

 
   TOTAL       $ 1,282,075,503  
        

 

 

 

Footnote(s):

 

(a)

The net cash receipts represent cash received by each Debtor assigned bank account.


In re: SEARS HOLDINGS CORPORATION, et al.    Case No. 18-23538 (RDD)

(Jointly Administered)

MOR-1b

  

Reporting Period: 11/4/18 - 12/1/18

Federal Tax I.D. No. 20-1920798

(in US Dollars)   
(Unaudited)   
  

 

SCHEDULE OF DISBURSEMENTS

 

#  

    

DEBTOR ENTITY NAME

   BANKRUPTCY
CASE NUMBER
     NET CASH
DISBURSEMENTS (a)
     PLUS: ESTATE
DISBURSEMENTS
MADE BY
OUTSIDE
SOURCES

(i.e. escrow accounts)
     TOTAL
DISBURSEMENTS
(FOR QUARTERLY
FEE PURPOSES)
     F/N  
  1.      SEARS, ROEBUCK AND CO.      087-18-23537      $ 990,732,960      $ —        $ 990,732,960     
  2.      SEARS HOLDINGS CORPORATION      087-18-23538        9,182        281,927,957        281,937,139        (b)  
  3.      KMART HOLDING CORPORATION      087-18-23539        —          —          —       
  4.      KMART OPERATIONS LLC      087-18-23540        14,894,658        —          14,894,658     
  5.      SEARS OPERATIONS LLC      087-18-23541        24,929,292        —          24,929,292     
  6.      SERVICELIVE, INC.      087-18-23542        331,616        —          331,616     
  7.      A&E FACTORY SERVICE, LLC      087-18-23543        1,165,534        —          1,165,534     
  8.      A&E HOME DELIVERY, LLC      087-18-23544        238,307        —          238,307     
  9.      A&E LAWN & GARDEN, LLC      087-18-23545        —          —          —       
  10.      A&E SIGNATURE SERVICE, LLC      087-18-23546        —          —          —       
  11.      FBA HOLDINGS INC.      087-18-23547        —                 —       
  12.      INNOVEL SOLUTIONS, INC.      087-18-23548        56,471,269        —          56,471,269     
  13.      KMART CORPORATION      087-18-23549        152,004,060        —          152,004,060     
  14.      MAXSERV, INC.      087-18-23550        2,841,800        —          2,841,800     
  15.      PRIVATE BRANDS, LTD.      087-18-23551        —          —          —       
  16.      SEARS DEVELOPMENT CO.      087-18-23552        —          —          —       
  17.      SEARS HOLDINGS MANAGEMENT CORPORATION      087-18-23553        62,324,902        —          62,324,902     
  18.      SEARS HOME & BUSINESS FRANCHISES, INC.      087-18-23554        228,781        —          228,781     
  19.      SEARS HOME IMPROVEMENT PRODUCTS, INC      087-18-23555        18,338,609        —          18,338,609     
  20.      SEARS INSURANCE SERVICES, L.L.C.      087-18-23556        313,461        —          313,461     
  21.      SEARS PROCUREMENT SERVICES, INC.      087-18-23557        —          —          —       
  22.      SEARS PROTECTION COMPANY      087-18-23558        171,529        —          171,529     
  23.      SEARS PROTECTION COMPANY (PR) INC.      087-18-23559        —          —          —       
  24.      SEARS ROEBUCK ACCEPTANCE CORP.      087-18-23560        13,916,285        —          13,916,285     
  25.      SEARS, ROEBUCK DE PUERTO RICO, INC.      087-18-23561        6,096,820        —          6,096,820     
  26.      SYW RELAY LLC      087-18-23562        11,366        —          11,366     
  27.      WALLY LABS LLC      087-18-23563        —          —          —       
  28.      BIG BEAVER OF FLORIDA DEVELOPMENT, LLC      087-18-23564        —          —          —       
  29.      CALIFORNIA BUILDER APPLIANCES, INC.      087-18-23565        8,140,280        —          8,140,280     
  30.      FLORIDA BUILDER APPLIANCES, INC.      087-18-23566        9,251,316        —          9,251,316     
  31.      KBL HOLDING INC.      087-18-23567        —          —          —       
  32.      KLC, INC.      087-18-23568        —          —          —       
  33.      SEARS PROTECTION COMPANY (FLORIDA), LLC      087-18-23569        —          —          —       
  34.      KMART OF WASHINGTON LLC      087-18-23570        483,255        —          483,255     
  35.      KMART STORES OF ILLINOIS LLC      087-18-23571        2,435,468        —          2,435,468     
  36.      KMART STORES OF TEXAS LLC      087-18-23572        288,215        —          288,215     
  37.      MYGOFER LLC      087-18-23573        —          —          —       
  38.      SEARS BRANDS BUSINESS UNIT CORP      087-18-23574        24,131        —          24,131     
  39.      SEARS HOLDINGS PUBLISHING COMPANY, LLC      087-18-23575        —          —          —       
  40.      KMART OF MICHIGAN, INC.      087-18-23576        4,269,796        —          4,269,796     
  41.      SHC DESERT SPRINGS, LLC      087-18-23577        —          —          —       
  42.      SOE, INC.      087-18-23578        —          —          —       
  43.      STARWEST, LLC      087-18-23579        3,352,693        —          3,352,693     
  44.      STI MERCHANDISING, INC.      087-18-23580        —          —          —       
  45.      TROY COOLIDGE NO. 13, LLC      087-18-23581        —          —          —       
  46.      BLUELIGHT.COM, INC.      087-18-23582        —          —          —       
  47.      SEARS BRANDS, L.L.C.      087-18-23583        —          —          —       
  48.      SEARS BUYING SERVICES, INC.      087-18-23584        —          —          —       
  49.      KMART.COM LLC      087-18-23585        659,696        —          659,696     
  50.      SEARS BRANDS MANAGEMENT CORPORATION      087-18-23586        4,072,191        —          4,072,191     
  51.      SHC LICENSED BUSINESS LLC      087-18-23616        —          —          —       
  52.      SHC PROMOTIONS LLC      087-18-23630        56,813        —          56,813     
        

 

 

    

 

 

    

 

 

    
   TOTAL       $ 1,378,054,285      $ 281,927,957      $ 1,659,982,242     
        

 

 

    

 

 

    

 

 

    

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.

(b)

Sears Holdings Corporation (087-18-23538) $281.9MM relates to a disbursement from the escrow PBGC account.


In re: SEARS HOLDINGS CORPORATION, et al.    Case No. 18-23538 (RDD)

(Jointly Administered)

MOR-1b (CON’T)

  

Reporting Period: 11/4/18 - 12/1/18

Federal Tax I.D. No. 20-1920798

(in US Dollars)   
(Unaudited)   
  

 

QTD SUMMARY OF DISBURSEMENTS BY DEBTOR

 

                 Q4’18  
            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    OCT. 15 - NOV. 3, 2018      NOV. 4 - DEC. 1, 2018      OCT. 15 - DEC. 1, 2018  
  1.      SEARS, ROEBUCK AND CO.    087-18-23537    $ 255,100,889      $ 990,732,960      $ 1,245,833,849  
  2.      SEARS HOLDINGS CORPORATION    087-18-23538      949,045        281,937,139        282,886,184  
  3.      KMART HOLDING CORPORATION    087-18-23539      —          —          —    
  4.      KMART OPERATIONS LLC    087-18-23540      4,804,392        14,894,658        19,699,050  
  5.      SEARS OPERATIONS LLC    087-18-23541      15,302,164        24,929,292        40,231,456  
  6.      SERVICELIVE, INC.    087-18-23542      152,786        331,616        484,402  
  7.      A&E FACTORY SERVICE, LLC    087-18-23543      800,784        1,165,534        1,966,318  
  8.      A&E HOME DELIVERY, LLC    087-18-23544      158,551        238,307        396,857  
  9.      A&E LAWN & GARDEN, LLC    087-18-23545      —          —          —    
  10.      A&E SIGNATURE SERVICE, LLC    087-18-23546      —                 —    
  11.      FBA HOLDINGS INC.    087-18-23547      —                 —    
  12.      INNOVEL SOLUTIONS, INC.    087-18-23548      19,307,550        56,471,269        75,778,819  
  13.      KMART CORPORATION    087-18-23549      74,762,024        152,004,060        226,766,084  
  14.      MAXSERV, INC.    087-18-23550      1,961,037        2,841,800        4,802,837  
  15.      PRIVATE BRANDS, LTD.    087-18-23551      —          —          —    
  16.      SEARS DEVELOPMENT CO.    087-18-23552      —          —          —    
  17.      SEARS HOLDINGS MANAGEMENT CORPORATION    087-18-23553      36,516,398        62,324,902        98,841,300  
  18.      SEARS HOME & BUSINESS FRANCHISES, INC.    087-18-23554      418,338        228,781        647,119  
  19.      SEARS HOME IMPROVEMENT PRODUCTS, INC    087-18-23555      11,508,091        18,338,609        29,846,701  
  20.      SEARS INSURANCE SERVICES, L.L.C.    087-18-23556      24,074        313,461        337,535  
  21.      SEARS PROCUREMENT SERVICES, INC.    087-18-23557      —          —          —    
  22.      SEARS PROTECTION COMPANY    087-18-23558      309,400        171,529        480,929  
  23.      SEARS PROTECTION COMPANY (PR) INC.    087-18-23559      —          —          —    
  24.      SEARS ROEBUCK ACCEPTANCE CORP.    087-18-23560      19,529        13,916,285        13,935,814  
  25.      SEARS, ROEBUCK DE PUERTO RICO, INC.    087-18-23561      3,823,797        6,096,820        9,920,617  
  26.      SYW RELAY LLC    087-18-23562      3,734        11,366        15,101  
  27.      WALLY LABS LLC    087-18-23563      —          —          —    
  28.      BIG BEAVER OF FLORIDA DEVELOPMENT, LLC    087-18-23564      —          —          —    
  29.      CALIFORNIA BUILDER APPLIANCES, INC.    087-18-23565      2,551,620        8,140,280        10,691,900  
  30.      FLORIDA BUILDER APPLIANCES, INC.    087-18-23566      4,330,290        9,251,316        13,581,606  
  31.      KBL HOLDING INC.    087-18-23567      —          —          —    
  32.      KLC, INC.    087-18-23568      —          —          —    
  33.      SEARS PROTECTION COMPANY (FLORIDA), LLC    087-18-23569      —          —          —    
  34.      KMART OF WASHINGTON LLC    087-18-23570      307,014        483,255        790,269  
  35.      KMART STORES OF ILLINOIS LLC    087-18-23571      1,148,561        2,435,468        3,584,029  
  36.      KMART STORES OF TEXAS LLC    087-18-23572      143,524        288,215        431,738  
  37.      MYGOFER LLC    087-18-23573      —          —          —    
  38.      SEARS BRANDS BUSINESS UNIT CORP    087-18-23574      507,742        24,131        531,873  
  39.      SEARS HOLDINGS PUBLISHING COMPANY, LLC    087-18-23575      —          —          —    
  40.      KMART OF MICHIGAN, INC.    087-18-23576      2,129,276        4,269,796        6,399,072  
  41.      SHC DESERT SPRINGS, LLC    087-18-23577      —          —          —    
  42.      SOE, INC.    087-18-23578      —          —          —    
  43.      STARWEST, LLC    087-18-23579      4,067,014        3,352,693        7,419,706  
  44.      STI MERCHANDISING, INC.    087-18-23580      —          —          —    
  45.      TROY COOLIDGE NO. 13, LLC    087-18-23581      —          —          —    
  46.      BLUELIGHT.COM, INC.    087-18-23582      —          —          —    
  47.      SEARS BRANDS, L.L.C.    087-18-23583      —          —          —    
  48.      SEARS BUYING SERVICES, INC.    087-18-23584      —          —          —    
  49.      KMART.COM LLC    087-18-23585      229,687        659,696        889,383  
  50.      SEARS BRANDS MANAGEMENT CORPORATION    087-18-23586      4,198,791        4,072,191        8,270,982  
  51.      SHC LICENSED BUSINESS LLC    087-18-23616      —          —          —    
  52.      SHC PROMOTIONS LLC    087-18-23630      45,116        56,813        101,929  
        

 

 

    

 

 

    

 

 

 
   Total       $ 445,581,218      $ 1,659,982,242      $ 2,105,563,459  
        

 

 

    

 

 

    

 

 

 


In re: SEARS HOLDINGS CORPORATION, et al.    Case No. 18-23538 (RDD)
(Jointly Administered)    Reporting Period: 11/4/18 - 12/1/18
MOR-1c    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
1.    California Builder Appliances, Inc.    087-18-23565    Bank of America, N.A.      6850        —        (a)
2.    Florida Builder Appliances, Inc.    087-18-23566    Bank of America, N.A.      7770        —        (a)
3.    Innovel Solutions, Inc.    087-18-23548    Bank of America, N.A.      3618        —        (a)
4.    Kmart Corporation    087-18-23549    Banco Popular      0247        53,827      (b)
5.    Kmart Corporation    087-18-23549    Banco Popular      6180        600,799      (b)
6.    Kmart Corporation    087-18-23549    BancorpSouth      3945        11,800      (c)
7.    Kmart Corporation    087-18-23549    Bank of America, N.A.      0136        —        (a)
8.    Kmart Corporation    087-18-23549    Bank of America, N.A.      0508        —        (a)
9.    Kmart Corporation    087-18-23549    Bank of America, N.A.      0986        —        (a)
10.    Kmart Corporation    087-18-23549    Bank of America, N.A.      0994        —        (a)
11.    Kmart Corporation    087-18-23549    Bank of America, N.A.      1000        —        (a)
12.    Kmart Corporation    087-18-23549    Bank of America, N.A.      2102        267,985      (a)
13.    Kmart Corporation    087-18-23549    Bank of America, N.A.      3295        —        (a)
14.    Kmart Corporation    087-18-23549    Bank of America, N.A.      3531        —        (a)
15.    Kmart Corporation    087-18-23549    Bank of America, N.A.      3816        —        (a)
16.    Kmart Corporation    087-18-23549    Bank of America, N.A.      3896        —        (e)
17.    Kmart Corporation    087-18-23549    Bank of America, N.A.      3929        580,457      (e)
18.    Kmart Corporation    087-18-23549    Bank of America, N.A.      4404        —        (a)
19.    Kmart Corporation    087-18-23549    Bank of America, N.A.      5450        10,000,000      (d)
20.    Kmart Corporation    087-18-23549    Bank of America, N.A.      6005        —        (a)
21.    Kmart Corporation    087-18-23549    Bank of America, N.A.      6911        —        (a)
22.    Kmart Corporation    087-18-23549    Bank of America, N.A.      7539        —        (e)
23.    Kmart Corporation    087-18-23549    Bank of America, N.A.      7542        —        (e)
24.    Kmart Corporation    087-18-23549    Bank of America, N.A.      7555        —        (e)
25.    Kmart Corporation    087-18-23549    Bank of America, N.A.      7743        —        (e)
26.    Kmart Corporation    087-18-23549    Bank of America, N.A.      7756        —        (e)
27.    Kmart Corporation    087-18-23549    Bank of America, N.A.      7769        —        (a)
28.    Kmart Corporation    087-18-23549    Bank of America, N.A.      7772        —        (a)
29.    Kmart Corporation    087-18-23549    Bank of America, N.A.      7785        —        (e)
30.    Kmart Corporation    087-18-23549    Bank of America, N.A.      7798        —        (a)
31.    Kmart Corporation    087-18-23549    Bank of America, N.A.      7808        —        (a)
32.    Kmart Corporation    087-18-23549    Bank of America, N.A.      7811        —        (a)
33.    Kmart Corporation    087-18-23549    Bank of America, N.A.      7824        —        (e)
34.    Kmart Corporation    087-18-23549    Bank of America, N.A.      7837        —        (e)
35.    Kmart Corporation    087-18-23549    Bank of America, N.A.      7970        —        (f)
36.    Kmart Corporation    087-18-23549    Bank of America, N.A.      8978        4,293,343      (h)
37.    Kmart Corporation    087-18-23549    Bank Of Oklahoma      5769        9,098      (a)
38.    Kmart Corporation    087-18-23549    BB&T Bank      8654        6,712      (a)
39.    Kmart Corporation    087-18-23549    Capital One Bank      9632        66,466      (a)
40.    Kmart Corporation    087-18-23549    Cherokee State Bank      0494        68,382      (e)
41.    Kmart Corporation    087-18-23549    Citizens Bank      7910        326,865      (a)


In re: SEARS HOLDINGS CORPORATION, et al.    Case No. 18-23538 (RDD)
(Jointly Administered)    Reporting Period: 11/4/18 - 12/1/18
MOR-1c    Federal Tax I.D. No. 20-1920798
(in US Dollars)   
(Unaudited)   

 

BANK ACCOUNT INFORMATION

 

          CASE         LAST 4 DIGITS      BANK       

#

  

LEGAL ENTITY

   NUMBER   

BANK

   ACCOUNT #      BALANCE      F/N
42.    Kmart Corporation    087-18-23549    First and Farmers Bank      0543        10,000      (e)
43.    Kmart Corporation    087-18-23549    First Bank and Trust Company      9130        91,383      (g)
44.    Kmart Corporation    087-18-23549    First Hawaiian Bank      0940        331,574      (a)
45.    Kmart Corporation    087-18-23549    First Interstate Bank of Billings NA      2277        15,147      (b)
46.    Kmart Corporation    087-18-23549    First Interstate Bank of Riverton      1274        2,670      (b)
47.    Kmart Corporation    087-18-23549    First National Bank      0001        17,379      (e)
48.    Kmart Corporation    087-18-23549    Fidelity Bank      2180        3,841      (e)
49.    Kmart Corporation    087-18-23549    First National Bank of Grayson      4081        81,980      (e)
50.    Kmart Corporation    087-18-23549    First Security      9005        34,651      (e)
51.    Kmart Corporation    087-18-23549    First Security      7014        45,505      (i)
52.    Kmart Corporation    087-18-23549    First State Bank      6705        4,000      (e)
53.    Kmart Corporation    087-18-23549    First Tennessee      0555        47,125      (a)
54.    Kmart Corporation    087-18-23549    Hilltop National Bank      4003        3,994      (e)
55.    Kmart Corporation    087-18-23549    Iowa State Bank      4408        58,891      (e)
56.    Kmart Corporation    087-18-23549    M&T Bank      2880        6,600      (a)
57.    Kmart Corporation    087-18-23549    NBT Bank      0573        3,952      (e)
58.    Kmart Corporation    087-18-23549    NorState Federal Credit Union      6752        25      (e)
59.    Kmart Corporation    087-18-23549    Old National Bank      5501        19,324      (e)
60.    Kmart Corporation    087-18-23549    PNC Bank      0169        177,290      (a)
61.    Kmart Corporation    087-18-23549    PNC Bank      3334        —        (a)
62.    Kmart Corporation    087-18-23549    PNC Bank      9553        —        (a)
63.    Kmart Corporation    087-18-23549    Union Bank      1583        649,064      (e)
64.    Kmart Corporation    087-18-23549    United Missouri Bank      0553        98,652      (a)
65.    Kmart Corporation    087-18-23549    United Missouri Bank      3100        5,000      (a)
66.    Kmart Corporation    087-18-23549    United Missouri Bank      4642        10,000      (a)
67.    Kmart Corporation    087-18-23549    Wells Fargo      0318        636,027      (a)
68.    Kmart Corporation    087-18-23549    Zions National Bank      6778        7,007      (e)
69.    Sears Holdings Corporation    087-18-23538    Bank of America, N.A.      0679        19,292      (e)
70.    Sears Holdings Corporation    087-18-23538    Bank of America, N.A.      4266        —        (a)
71.    Sears Holdings Corporation    087-18-23538    Bank of America, N.A.      6719        —        (a)
72.    Sears Holdings Management Corporation    087-18-23553    Bank of America, N.A.      5426        —        (e)
73.    Sears Holdings Management Corporation    087-18-23553    Bank of America, N.A.      6338        —        (e)
74.    Sears Holdings Management Corporation    087-18-23553    Bank of America, N.A.      6722        —        (a)
75.    Sears Holdings Management Corporation    087-18-23553    KeyBank      1056        17,075      (e)
76.    Sears Holdings Management Corporation    087-18-23553    US Bank      8942        231      (e)
77.    Sears Home Improvement Products, Inc.    087-18-23555    Bank of America, N.A.      0978        —        (a)
78.    Sears Protection Company    087-18-23558    Bank of America, N.A.      4583        78,826      (a)
79.    Sears Protection Company (Florida), LLC    087-18-23569    Bank of America, N.A.      4596        8,013      (a)
80.    Sears Protection Company (PR), Inc.    087-18-23559    Banco Popular      5678        22,442      (a)
81.    Sears Roebuck Acceptance Corp.    087-18-23560    Bank of America, N.A.      0955        —        (e)
82.    Sears Roebuck Acceptance Corp.    087-18-23560    Bank of America, N.A.      6815        —        (e)


In re: SEARS HOLDINGS CORPORATION, et al.    Case No. 18-23538 (RDD)
(Jointly Administered)    Reporting Period: 11/4/18 - 12/1/18
MOR-1c    Federal Tax I.D. No. 20-1920798
(in US Dollars)   
(Unaudited)   

 

BANK ACCOUNT INFORMATION

 

          CASE         LAST 4 DIGITS      BANK       

#

  

LEGAL ENTITY

   NUMBER   

BANK

   ACCOUNT #      BALANCE      F/N
83.    Sears Roebuck Acceptance Corp.    087-18-23560    Bank of America, N.A.      9512        88,015      (e)
84.    Sears, Roebuck and Co.    087-18-23537    Bank of America, N.A.      0149        —        (a)
85.    Sears, Roebuck and Co.    087-18-23537    Bank of America, N.A.      0556        —        (e)
86.    Sears, Roebuck and Co.    087-18-23537    Bank of America, N.A.      0895        —        (a)
87.    Sears, Roebuck and Co.    087-18-23537    Bank of America, N.A.      0903        —        (a)
88.    Sears, Roebuck and Co.    087-18-23537    Bank of America, N.A.      0911        —        (a)
89.    Sears, Roebuck and Co.    087-18-23537    Bank of America, N.A.      0929        —        (a)
90.    Sears, Roebuck and Co.    087-18-23537    Bank of America, N.A.      0945        —        (a)
91.    Sears, Roebuck and Co.    087-18-23537    Bank of America, N.A.      0952        —        (a)
92.    Sears, Roebuck and Co.    087-18-23537    Bank of America, N.A.      1451        —        (a)
93.    Sears, Roebuck and Co.    087-18-23537    Bank of America, N.A.      1595        2,117,720      (a)
94.    Sears, Roebuck and Co.    087-18-23537    Bank of America, N.A.      3107        —        (e)
95.    Sears, Roebuck and Co.    087-18-23537    Bank of America, N.A.      3266        —        (a)
96.    Sears, Roebuck and Co.    087-18-23537    Bank of America, N.A.      4120        —        (a)
97.    Sears, Roebuck and Co.    087-18-23537    Bank of America, N.A.      4205        —        (a)
98.    Sears, Roebuck and Co.    087-18-23537    Bank of America, N.A.      4394        —        (e)
99.    Sears, Roebuck and Co.    087-18-23537    Bank of America, N.A.      5261        173,799      (a)
100.    Sears, Roebuck and Co.    087-18-23537    Bank of America, N.A.      5468        —        (a)
101.    Sears, Roebuck and Co.    087-18-23537    Bank of America, N.A.      5885        —        (a)
102.    Sears, Roebuck and Co.    087-18-23537    Bank of America, N.A.      6570        56,957,889      (g)
103.    Sears, Roebuck and Co.    087-18-23537    Bank of America, N.A.      6654        1,434      (e)
104.    Sears, Roebuck and Co.    087-18-23537    Bank of America, N.A.      6667        —        (e)
105.    Sears, Roebuck and Co.    087-18-23537    Bank of America, N.A.      7607        —        (e)
106.    Sears, Roebuck and Co.    087-18-23537    Bank of America, N.A.      7776        —        (a)
107.    Sears, Roebuck and Co.    087-18-23537    Bank of America, N.A.      7802        —        (a)
108.    Sears, Roebuck and Co.    087-18-23537    Bank of America, N.A.      7828        —        (e)
109.    Sears, Roebuck and Co.    087-18-23537    Bank of America, N.A.      7831        —        (e)
110.    Sears, Roebuck and Co.    087-18-23537    Bank of America, N.A.      7844        —        (e)
111.    Sears, Roebuck and Co.    087-18-23537    Bank of America, N.A.      7857        —        (e)
112.    Sears, Roebuck and Co.    087-18-23537    Bank of America, N.A.      7969        —        (e)
113.    Sears, Roebuck and Co.    087-18-23537    Bank of America, N.A.      7972        —        (e)
114.    Sears, Roebuck and Co.    087-18-23537    Bank of America, N.A.      8279        N/A      (j)
115.    Sears, Roebuck and Co.    087-18-23537    Bank of America, N.A.      8855        —        (a)
116.    Sears, Roebuck and Co.    087-18-23537    Bank of America, N.A.      8868        —        (a)
117.    Sears, Roebuck and Co.    087-18-23537    Bank of America, N.A.      8871        —        (e)
118.    Sears, Roebuck and Co.    087-18-23537    Bank of America, N.A.      8884        —        (a)
119.    Sears, Roebuck and Co.    087-18-23537    Bank of America, N.A.      8960        —        (e)
120.    Sears, Roebuck and Co.    087-18-23537    Bank of America, N.A.      8965        81,056,251      (h)
121.    Sears, Roebuck and Co.    087-18-23537    Bank of America, N.A.      8973        —        (e)
122.    Sears, Roebuck and Co.    087-18-23537    Bank of America, N.A.      8981        1,570,669      (a)
123.    Sears, Roebuck and Co.    087-18-23537    Bank of America, N.A.      8986        —        (e)


In re: SEARS HOLDINGS CORPORATION, et al.    Case No. 18-23538 (RDD)
(Jointly Administered)    Reporting Period: 11/4/18 - 12/1/18
MOR-1c    Federal Tax I.D. No. 20-1920798
(in US Dollars)   
(Unaudited)   

 

BANK ACCOUNT INFORMATION

 

          CASE         LAST 4 DIGITS      BANK       

#

  

LEGAL ENTITY

   NUMBER   

BANK

   ACCOUNT #      BALANCE      F/N
124.   

Sears, Roebuck and Co.

   087-18-23537   

Bank of America, N.A.

     8994        –          (e)
125.   

Sears, Roebuck and Co.

   087-18-23537   

Bank of America, N.A.

     9415        1,847      (e)
126.   

Sears, Roebuck and Co.

   087-18-23537   

Bank of America, N.A.

     9457        636,899      (e)
127.   

Sears, Roebuck and Co.

   087-18-23537   

Bank of America, N.A.

     9939        –          (a)
128.   

Sears, Roebuck and Co.

   087-18-23537   

Bank Of Oklahoma

     1048        96,211      (a)
129.   

Sears, Roebuck and Co.

   087-18-23537   

Capital One Bank

     4557        –          (c)
130.   

Sears, Roebuck and Co.

   087-18-23537   

Capital One Bank

     9999        10,272      (a)
131.   

Sears, Roebuck and Co.

   087-18-23537   

Citizens Bank

     3397        194,293      (a)
132.   

Sears, Roebuck and Co.

   087-18-23537   

First Hawaiian Bank

     8911        220,819      (a)
133.   

Sears, Roebuck and Co.

   087-18-23537   

First Tennessee

     0003        23,659      (a)
134.   

Sears, Roebuck and Co.

   087-18-23537   

KeyBank

     4236        38,539      (e)
135.   

Sears, Roebuck and Co.

   087-18-23537   

PNC Bank

     2515        157,695      (a)
136.   

Sears, Roebuck and Co.

   087-18-23537   

PNC Bank

     3342        –          (a)
137.   

Sears, Roebuck and Co.

   087-18-23537   

PNC Bank

     3424        –          (a)
138.   

Sears, Roebuck and Co.

   087-18-23537   

Regions Bank

     5433        100,177      (a)
139.   

Sears, Roebuck and Co.

   087-18-23537   

Union Bank

     4871        464,987      (a)
140.   

Sears, Roebuck and Co.

   087-18-23537   

Wells Fargo

     2397        399,143      (a)
141.   

Sears, Roebuck de Puerto Rico, Inc.

   087-18-23561   

Banco Popular

     1580        –          (a)
142.   

Sears, Roebuck de Puerto Rico, Inc.

   087-18-23561   

Banco Popular

     7665        410,899      (a)
143.   

StarWest, LLC

   087-18-23579   

Bank of America, N.A.

     9396        –          (a)
144.   

Sears Roebuck Acceptance Corp.

   087-18-23560   

Bank of America, N.A.

     N/A        –          (k)

Footnote(s):

 

(a)

The bank statement(s) are for the period from 11/3/18 through 11/30/18.

 

(b)

The bank statement(s) are for the period from 10/27/18 through 11/23/18.

 

(c)

The bank statement(s) date is 11/30/18.

 

(d)

Kmart Corporation (087-18-23549) Bank of America, N.A. account ending in x5450 is a new account opened November 2018.

 

(e)

The bank statement(s) are for the period from 11/1/18 through 11/30/18.

 

(f)

Kmart Corporation (087-18-23549) Bank of America, N.A. account ending in x7970 had no activity in over a year and a balance of zero dollars as of 12/1/18.    

 

(g)

The bank statement(s) are for the period from 10/31/18 through 11/30/18.

 

(h)

Kmart Corporation (087-18-23549) Bank of America, N.A. account ending in x8978 and Sears, Roebuck and Co. (087-18-23537) Bank of America, N.A. account ending in x8965 were “dormant” bank accounts. There was no beginning date on the bank statement and the ending date on the bank statement was 11/30/18.    

 

(i)

The bank statement(s) are for the period from 11/5/18 through 12/4/18.

 

(j)

Sears, Roebuck and Co. (087-18-23537) Bank of America, N.A. account ending in x8279 is a new account opened December 2018.

 

(k)

The Escrow DIP ABL Financing Account had a balance of zero as of 12/1/18 as the Company resumed paying on the ABL revolver.

 

(l)

The Escrow PBGC Account is an account held for the benefit of the PBGC and therefore not listed in the accounts above. Distributions were made from the account in November and as of 12/1/18, the balance in the Escrow PBGC Account is zero.


In re: SEARS HOLDINGS CORPORATION, et al.    Case No. 18-23538 (RDD)
(Jointly Administered)    Reporting Period: 11/4/18 - 12/1/18
MOR-1d    Federal Tax I.D. No. 20-1920798
(in US Dollars)   
(Unaudited)   

 

SCHEDULE OF RETAINED RESTRUCTURING PROFESSIONAL FEE DISBURSEMENTS & US TRUSTEE FEES

 

PROFESSIONAL

   2018  
       OCT.          NOV.      CUMULATIVE  

Estate Professionals

        

Lazard Freres & Co. LLC

   $ —        $ 1,480,000      $ 1,480,000  

Prime Clerk (a)

     —          515,000        515,000  

Total Estate Professionals

     —          1,995,000        1,995,000  

Total Retained Professionals

     —          1,995,000        1,995,000  

US Trustee Quarterly Fees

     —          —          —    
  

 

 

    

 

 

    

 

 

 

Total Professional and US Trustee Fees

   $ —        $ 1,995,000      $ 1,995,000  
  

 

 

    

 

 

    

 

 

 

Footnote(s):

 

(a)

Prime Clerk payment of $515,000 in November represents a pre-payment for the Notice of Commencement mailing.


In re: SEARS HOLDINGS CORPORATION, et al.    Case No. 18-23538 (RDD)
(Jointly Administered)    Reporting Period: 11/4/18 - 12/1/18
MOR-2    Federal Tax I.D. No. 20-1920798
(Unaudited)   
  

 

STATEMENT OF OPERATIONS

 

Condensed & Consolidated Income Statement (a)    Month Ended  
     December 1, 2018  
     (in millions)  

REVENUES

  

Merchandise sales and services

   $ 782  

Services and other

     142  
  

 

 

 

Total revenues

     924  

COSTS AND EXPENSES

  

Cost of sales, buying and occupancy—merchandise sales

     674  

Cost of sales and occupancy—services and other

     92  
  

 

 

 

Total cost of sales, buying and occupancy

     766  

Selling and administrative

     200  

Depreciation and amortization

     25  

Impairment charges

     —    

Gain on sales of assets

     (17
  

 

 

 

Total costs and expenses

     974  
  

 

 

 

Operating income (loss)

     (50

Reorganization, net

     (44

Interest expense

     (29

Interest and investment income (loss)

     2  

Other loss

     (8
  

 

 

 

Income (loss) before income taxes

     (129

Income tax (expense) benefit

     4  
  

 

 

 
NET LOSS    $ (125
  

 

 

 

Footnote(s):

 

(a)

Numbers may not foot due to rounding


In re: SEARS HOLDINGS CORPORATION, et al.    Case No. 18-23538 (RDD)
(Jointly Administered)    Reporting Period: 11/4/18 - 12/1/18
MOR-3    Federal Tax I.D. No. 20-1920798
(Unaudited)   
  

 

BALANCE SHEET

 

Condensed & Consolidated Balance Sheet (a)    As of  
     December 1, 2018  
     (in millions)  

ASSETS

  

Current assets

  

Cash and Cash Equivalents

   $ 179  

Restricted Cash

     152  

Accounts Receivable

     350  

Merchandise Inventories

     2,081  

Prepaid Expenses and Other Current Assets

     458  
  

 

 

 

Total Current Assets

     3,220  

Property and Equipment (net of accumulated depreciation and amortization)

     1,010  

Goodwill and Intangible Assets

     696  

Other Assets

     384  

Investment in Subsidiaries

     26,549  
  

 

 

 

TOTAL ASSETS

   $ 31,859  
  

 

 

 

LIABILITIES

  

Current Liabilities

  

Short-Term Borrowings

   $ 623  

Current Portion of Long-Term Debt and Capitalized Lease Obligations

     436  

Debtor-in-possession credit facility

     187  

Merchandise Payables

     155  

Intercompany Payables

     27,147  

Other Current Liabilities

     1,553  
  

 

 

 

Total Current Liabilities

     30,101  

Long-term Debt and Capitalized Lease Obligations

     2,988  

Pension and Postretirement Benefits

     135  

Deferred Gain on Sale-Leaseback

     236  

Sale-Leaseback Financing Obligation

     371  

Unearned Revenues

     —    

Other Long-term Liabilities

     567  

Long-term Deferred Tax Liabilities

     401  
  

 

 

 

Total Liabilities Not Subject to Compromise

     34,799  

Liabilities Subject to Compromise

     4,327  

Commitments and Contingencies

     —    

DEFICIT

     —    

Total Deficit

     (7,267
  

 

 

 

TOTAL LIABILITIES AND DEFICIT

   $ 31,859  
  

 

 

 

Footnote(s):

 

(a)

Numbers may not foot due to rounding


In re: SEARS HOLDINGS CORPORATION, et al.    Case No. 18-23538 (RDD)
Debtor    Reporting Period: 11/4/18 - 12/1/18
MOR-4a, 4b, 4c    Federal Tax I.D. No. 20-1920798
(in US Dollars)   
  

 

MOR-4a: STATUS OF POST-PETITION TAXES

Subject: November Monthly Operating Report Attestation Regarding Post-petition Taxes

The Debtor, 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 tax

disputes or reconciliations.

 

/s/ Rob A. Riecker

Robert A. Riecker

Member Office of the CEO and Chief Financial 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

   $  155,223,732      $  —        $  —        $  —        $  —        $  155,223,732  

MOR-4c: ACCOUNTS RECEIVABLE AGING

 

DESCRIPTION

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

Accounts Receivable, Net (a)

                  $  350,018,310  

Footnote(s):

(a) Accounts Receivable, Net aging for $350,018,310 has not been completed at time of filing this MOR, see Note 8h in the Global

Notes for further detail.


In re: SEARS HOLDINGS CORPORATION, et al.    Case No. 18-23538 (RDD)
Debtor    Reporting Period: 11/4/18 - 12/1/18
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  

Regular Earnings, Adjust Regular Earnings, Cash Reimbursement Non-Tax, Commuter Pay, Expense Reimbursement, Relocation Payment, Restructuring Committee Retainer

   $  1,091,331  

Footnote(s):

 

(a)

The payments to insiders includes payments by the Debtors to individuals who were directors of the Board of Sears Holdings Corporation, employees who have been included in the Debtors’ Key Employee Incentive Plan, and the Debtors’ Chief Restructuring Officer during the reporting period.

Persons included as “insiders” have been included for informational purposes only. The Debtors do not concede or take any position with respect to: (a) such person’s influence over the control of the Debtors; (b) the management responsibilities or functions of such individual; (c) the decision-making or corporate authority of such individual; or (d) 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.


In re: SEARS HOLDINGS CORPORATION, et al.    Case No. 18-23538 (RDD)
Debtor    Reporting Period: 11/4/18 - 12/1/18
MOR-6    Federal Tax I.D. No. 20-1920798
(in US Dollars)   
  

 

DIP FINANCING (TERM LOAN, ABL AND JUNIOR TERM LOAN) - PERIOD TO DATE

 

DESCRIPTION

   BEGINNING
BALANCE
     ADDITIONAL
DRAWS
     PAYDOWNS     ENDING BALANCE  

DIP ABL Facility (including the rollup of pre-petition ABL revolving and term loans and L/Cs) Note: shows draws and paydowns of DIP term loans only; the revolving advances are repaid with daily cash sweep, except for revolving advances repaid on the Effective Date

   $  111,889,241      $  111,889,241      ($ 111,889,241   $  111,889,241  

DIP Junior Term Loan Facility

     —          75,000,000        —         75,000,000  


In re: SEARS HOLDINGS CORPORATION, et al.    Case No. 18-23538 (RDD)
Debtor    Reporting Period: 11/4/18 - 12/1/18
                        Federal Tax I.D. No. 20-1920798
  
  

 

MOR 7: 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       Under a Note Purchase Agreement, Sears Roebuck Acceptance Corp., Sears Holdings Corporation, and certain other Debtors sold their rights, title and interests to certain medium-term intercompany notes (MTN) issued by SRAC to Cyrus Capital Partners, L.P. for $82.5MM on 11/20/18, which proceeds (net of expenses) were received on 11/28/18. (a)
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       As allowed under the First Day Orders
7.    Are any post petition receivables (accounts, notes or loans) due from related parties?    X       Sears Hometown and Outlet Stores owes SRC for the monthly intercompany settlement related to service contract sales, inventory and other support functions provided by the debtor.
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       The final portion of the sales tax collected between October 7, 2018 and October 15, 2018 was paid in November.
13.    Are any amounts owed to post petition creditors delinquent?       X   
14.    Are any wage payments past due?       X   
15.    Have any post petition loans been received by the Debtor from any party?    X       Received $112MM from BAML, Citi & Wells Fargo as a Debtor in Possession (DIP) Term Loan to SRAC.
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   
18.    Have the owners or shareholders received any compensation outside of the normal course of business?       X   

Footnote(s):    

 

(a)

See Order Authorizing Debtors to Sell Medium Term Notes [ECF No. 826].