Sears 2015 Annual Report Download - page 14

Download and view the complete annual report

Please find page 14 of the 2015 Sears annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 132

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132

consistent with the previously disclosed term sheet, pursuant to which the Company would continue to protect, or
"ring-fence," pursuant to customary covenants, the assets of certain special purpose subsidiaries (the "Relevant
Subsidiaries") holding real estate and/or intellectual property assets.€Also under the proposed agreement, the
Relevant Subsidiaries would grant PBGC a springing lien on the ring-fenced assets, which lien would be triggered
only by (a) failure to make required contributions to the Company's pension plan (the "Plan"), (b) prohibited
transfers of ownership interests in the Relevant Subsidiaries, (c) termination events with respect to the Plan, and (d)
bankruptcy events with respect to the Company or certain of its material subsidiaries.€
The Company will continue to make required contributions to the Plan, the scheduled amounts of which are
not affected by the arrangement.€Under the proposed agreement, the PBGC would agree to forbear from initiating an
involuntary termination of the Plan, except upon the occurrence of specified conditions.€If the PBGC were to initiate
an involuntary termination of the Plan, our financial condition could be materially and adversely affected.
Item€1B. Unresolved Staff Comments
Not applicable.
14