Investor says affiliate won’t lend Sears $100M
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A Sears investor said its affiliate won’t be part of plans to lend $400 million to the struggling Hoffman Estates-based retailer.
Fairholme Funds said in a filing Thursday that real estate operating company St. Joe Co. wouldn’t contribute as much as $100 million to the loan.
“The St. Joe Co. was unable to agree on terms for such a participation in light of its investment criteria and has declined the opportunity to participate,” Fairholme Funds said in a filing. St. Joe is an affiliate of Fairholme, run by famed fund manager Bruce R. Berkowitz.
Earlier this month, Sears said it would take out a $400 million secured short-term loan from entities affiliated with ESL Investments Inc., the hedge fund run by Sears CEO Edward Lampert.
ESL remains 100 percent committed to backing the loan, a spokesman for the firm told Bloomberg, which first reported the news.