Looks like Sears Canada is gonna die

[bizaro86]

Originally Posted by Ashartus

It might depend on the purchase agreement, which if Concord Pacific did their due diligence would presumably have explicitly dealt with previous environmental liability. There is still the potential under the Environmental Protection and Enhancement Act for the government to designate the current owner of the property as a responsible party, if they did here I imagine it would end up in the courts.

Interesting. It seems to me a guarantee from Sears Canada to deal with the problem should be worth the same amount in bankruptcy to Concord Pacific as it is to the homeowners.

[Canehdianman]

Originally Posted by mrkajz44

Yup - the news has tried to spin it as the shareholders took all the money by saying so many millions of dollars were paid to shareholders through dividends over the past several years, but in reality the shareholders get zero from bankruptcy as the company is well underwater.

What a novel interpretation. Following that rationale, the employees have been taking money for the past hundred years as well! How devious of them!!!

[mrkajz44]

Originally Posted by Canehdianman

What a novel interpretation. Following that rationale, the employees have been taking money for the past hundred years as well! How devious of them!!!

Yeah, no kidding. Here is one of many articles that are talking about it:

https://www.ctvnews.ca/business/611-...itor-1.3763710

$611 million in Sears Canada dividend payments under review by court monitor

Of particular interest to the monitor are a $102 million dividend payment on Dec. 31, 2012 and a $509 million dividend payment on Dec. 6, 2013.

I'm the furthest thing from an expert on bankruptcy, but I don't see how dividends from 4-5 years ago relate the the bankruptcy today. Maybe the Board acted inappropriately given the facts they knew at the time declaring the dividends, but it was so long ago I don't see how anything like that could stick.