Bankruptcy Judge Allows Chairman Eddie Lampert Another Chance To Buy Sears

(RTTNews) - Sears Holdings Corp.'s (SHLDQ) Chairman Eddie Lampert was given another chance by a bankruptcy judge to buy the retailer out of bankruptcy, CNBC reported.

Sears filed for bankruptcy in October. In late December, Sears narrowly averted liquidation after the Chairman made a last-minute $4.4 billion bid through his hedge fund ESL Investments to buy the company out of bankruptcy.

The bankruptcy judge gave Lampert more time on Tuesday, but ESL will now be required to pay a $120 million deposit by 4:00 p.m. Wednesday.

Sears reportedly will allow Lampert to participate in a previously scheduled auction Monday, when it will compare ESL's offer to others by liquidators.

Lampert's latest offer is said to be the only bid that could keep the company going in its entirety.

CNBC reported that one major issue was that it fell short of covering the fees and vendor payment it owes, making it administratively insolvent.