by kleinbl00

Gaps remained in some of the financing and the plan wouldn’t have provided enough cash to cover costs incurred in the bankruptcy, the people said. It also undervalued inventory and other assets relative to what liquidators were promising to pay.

Another key sticking point: Much of Lampert’s bid rested on him getting ownership of the reorganized business in exchange for the forgiveness of $1.3 billion of debt he holds. But the validity of those very claims -- racked up in a series of spinoffs, refinancings and other transactions -- has already been challenged by a group of creditors. The ESL plan didn’t include a cash backstop for that part of the bid.

"So here's my plan. You pretend this shit is all worth 50 cents on the dollar, and I'll pretend I paid you the $1.3b I've siphoned out of this company, and in exchange, you give it to me. Whattayathink, fellas?"