Sears 8K Regulation FD Disclosure | SHLDQ 21 Jan 20

Sears (SHLDQ) 8-KRegulation FD Disclosure

Exhibit 99.1

In re: Sears Holdings Corporation,et al.

Debtors

Case No. 18-23538 (RDD)

Reporting Period: September 1 – October 5, 2019

Federal Tax I.D. # 20-1920798

GLOBAL NOTES AND STATEMENTS OF LIMITATIONS

AND DISCLAIMERS REGARDING THE DEBTORS’ MONTHLY OPERATING REPORTS

On October 15, 2018 (the “Petition Date”), Sears Holdings Corporation and 49 of its debtor affiliates, as debtors and debtors in possession in the above-captioned chapter 11 cases (collectively, the “Debtors,” and together with the Debtors’ non-debtor affiliates, the “Company”)¹ filed voluntary petitions for relief under chapter 11 of title 11 of the United States Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the Southern District of New York (the “Bankruptcy Court”). In addition, Debtors SHC Licensed Business LLC, SHC Promotions LLC and SRe Holding Corporation filed their voluntary petitions for relief on October 18, 2018, October 22, 2018 and January 7, 2019, respectively. The Debtors’ chapter 11 cases are being jointly administered for procedural purposes only pursuant to Rule 1015(b) of the Federal Rules of Bankruptcy Procedure (the “Bankruptcy Rules”) under the caption Sears Holdings Corporation.,et al., Case No. 18-23538 (RDD) (S.D.N.Y.), pursuant to an order entered by the Bankruptcy Court on October 15, 2018 [ECF No. 118]. On October 24, 2018, the United States Trustee for Region 2 (the “U.S. Trustee”) appointed an official committee of unsecured creditors pursuant to section 1102(a) of the Bankruptcy Code (the “Creditors’ Committee”) [ECF No. 276]. The Debtors continue to operate their business and manage their properties as debtors in possession pursuant to sections 1107(a) and 1108 of the Bankruptcy Code. On February 8, 2019, the Bankruptcy Court entered theOrder (I) Approving the Asset Purchase Agreement Among Sellers and Buyer, (II) Authorizing the Sale of Certain of the Debtors’ Assets Free and Clear of Liens, Claims, Interests and Encumbrances, (III) Authorizing the Assumption and Assignment of Certain Executory Contracts, and Leases in Connection Therewith and (IV) Granting Related Relief [ECF No. 2507] (the “Sale Order”). The Sale Transaction (as defined in the Sale Order) with Transform Holdco LLC (the “Buyer”) closed on February 11, 2019 (the “Closing”). On October 15, 2019, the Bankruptcy Court entered the Order (I) Confirming Modified Second Amended Joint Chapter 11 Plans of Sears Holdings Corporation and Its Affiliated Debtors and (II) Granting Related Relief[ECF No. 5370] (the “Confirmation Order”).

The Debtors in these chapter 11 cases, along with the last four digits of each Debtor’s federal tax identification number, are as follows: Sears Holdings Corporation (0798); Kmart Holding Corporation (3116); Kmart Operations LLC (6546); Sears Operations LLC (4331); Sears, Roebuck and Co. (0680); ServiceLive Inc. (6774); SHC Licensed Business LLC (3718); A&E Factory Service, LLC (6695); A&E Home Delivery, LLC (0205); A&E Lawn & Garden, LLC (5028); A&E Signature Service, LLC (0204); FBA Holdings Inc. (6537); Innovel Solutions, Inc. (7180); Kmart Corporation (9500); MaxServ, Inc. (7626); Private Brands, Ltd. (4022); Sears Development Co. (6028); Sears Holdings Management Corporation (2148); Sears Home & Business Franchises, Inc. (6742); Sears Home Improvement Products, Inc. (8591); Sears Insurance Services, L.L.C. (7182); Sears Procurement Services, Inc. (2859); Sears Protection Company (1250); Sears Protection Company (PR) Inc. (4861); Sears Roebuck Acceptance Corp. (0535); SR—Rover de Puerto Rico, LLC (f/k/a Sears, Roebuck de Puerto Rico, Inc.) (3626); SYW Relay LLC (1870); Wally Labs LLC (None); SHC Promotions LLC (9626); Big Beaver of Florida Development, LLC (None); California Builder Appliances, Inc. (6327); Florida Builder Appliances, Inc. (9133); KBL Holding Inc. (1295); KLC, Inc. (0839); Kmart of Michigan, Inc. (1696); Kmart of Washington LLC (8898); Kmart Stores of Illinois LLC (8897); Kmart Stores of Texas LLC (8915); MyGofer LLC (5531); Rover Brands Business Unit, LLC (4658); Sears Holdings Publishing Company, LLC. (5554); Sears Protection Company (Florida), L.L.C. (4239); SHC Desert Springs, LLC (None); SOE, Inc. (9616); StarWest, LLC (5379); STI Merchandising, Inc. (0188); Troy Coolidge No. 13, LLC (None); BlueLight.com, Inc. (7034); Sears Brands, L.L.C. (4664); Sears Buying Services, Inc. (6533); Kmart.com LLC (9022); Sears Brands Management Corporation (5365); and SRe Holding Corporation (4816). The location of the Debtors’ corporate headquarters is 3333 Beverly Road, Hoffman Estates, Illinois 60179.

In re: Sears Holdings Corporation,et al.

Debtors

Case No. 18-23538 (RDD)

Reporting Period: September 1 – October 5, 2019

Federal Tax I.D. # 20-1920798

The following notes, statements and limitations should be referred to, and referenced in connection with, any review of the MOR.

Basis of Presentation. The Debtors are filing their consolidated monthly operating report (the “MOR”) solely for purposes of complying with the monthly operating requirements applicable in the Debtors’ chapter 11 cases. The MOR is in a format acceptable to the U.S. Trustee for the Southern District of New York (the “U.S. Trustee”). The MOR should not be relied upon by any persons for information relating to current or future financial conditions, events, or performance of any of the Debtors or their affiliates.

In preparing the MOR, the Debtors relied on financial data derived from their books and records that was available at the time of preparation. Subsequent information or discovery may result in material changes to the MOR and errors or omissions may exist. Notwithstanding any such discovery, new information, or errors or omissions, the Debtors do not undertake any obligation or commitment to update the MOR.

This MOR has not been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S.GAAP”) and does not include all of the information and footnotes required by U.S. GAAP. Therefore, there can be no assurance that the consolidated financial information presented herein is complete, and readers are strongly cautioned not to place undue reliance on the MOR.

The information furnished in this report includes primarily normal recurring adjustments but does not include all the adjustments that would typically be made for the quarterly and annual consolidated financial statements to be in accordance with U.S. GAAP.

Furthermore, the monthly financial information contained herein has not been subjected to the same level of accounting review and testing that the Debtors apply in the preparation of their quarterly and annual consolidated financial information in accordance with U.S. GAAP. Accordingly, upon the application of such procedures, the Debtors believe that the financial information may be subject to change, and these changes could be material.

In future periods, any changes to prior period balances will be reflected in the current month’s MOR.

The results of operations contained herein are not necessarily indicative of results that may be expected from any other period or for the full year and may not necessarily reflect the consolidated results of operations and financial position of the Debtors in the future.

Reporting Period. Unless otherwise noted herein, the MOR generally reflects the Debtors’ books and records and financial activity occurring during the applicable reporting period. Except as otherwise noted, no adjustments have been made for activity occurring after the close of the reporting period.

Consolidated Entity Accounts Payable and Disbursements Systems. Cash was received and disbursed by the Debtors as described in theMotion of Debtors for Authority

In re: Sears Holdings Corporation,et al.

Debtors

Case No. 18-23538 (RDD)

Reporting Period: September 1 – October 5, 2019

Federal Tax I.D. # 20-1920798

to (I) Continue Using Existing Cash Management System, Bank Accounts, and Business Forms, (II) Implement Ordinary Course Changes to Cash Management System, (III) Continue Intercompany Transactions, and (IV) Provide Administrative Expense Priority for Post-Petition Intercompany Claims and Related Relief(the “Cash Management Motion”) to the extent approved in the order granting the Cash Management Motion on a final basis (the “Final Cash Management Order”) [ECF No. 1394].

On the Closing, in accordance with the terms of the Asset Purchase Agreement (as defined in the Sale Order), all of the Debtors’ bank accounts, other than those accounts listed on the annexed MOR-1c.1 schedule titled “Bank Account Information,” were transferred to the Buyer (as defined in the Sale Order), not including any cash in such transferred bank accounts.

Accuracy. The financial information disclosed herein was not prepared in accordance with federal or state securities laws or other applicable non-bankruptcy law or in lieu of complying with any periodic reporting requirements thereunder. Persons and entities trading in or otherwise purchasing, selling, or transferring the claims against or equity interests in the Debtors should evaluate this financial information in light of the purposes for which it was prepared. The Debtors are not liable for and undertake no responsibility to indicate variations from securities laws or for any evaluations of the Debtors based on this financial information or any other information.

Debtor-in-Possession Financing. On November 30, 2018, the Debtors received authorization from the Bankruptcy Court to access their $1,830,378,380 Debtor-in-Possession ABL Facility on a final basis pursuant to theFinal Order (I) Authorizing the Debtors to (A) Obtain Post-Petition Financing, (B) Grant Senior Secured Priming Liens and Superpriority Administrative Expense Claims, and (C) Utilize Cash Collateral; (II) Granting Adequate Protection to the Pre-Petition Secured Parties; (III) Modifying the Automatic Stay; and (IV) Granting Related Relief[ECF No. 955] (the “Final DIP ABL Order”), and on December 28, 2018 the Debtors received authorization to access on a final basis their $350 million Junior Debtor-in-Possession Facility pursuant to theFinal Junior DIP Order (I) Authorizing the Debtors to (A) Obtain Post-Petition Financing and (B) Grant Secured Priming Liens and Superpriority Administrative Expense Claim; (II) Modifying the Automatic Stay; and (IV) Granting Related Relief[ECF No. 1436] (the “Final Junior DIP Order,” and together with the Final ABL DIP Order, the “DIP Orders”) and the documents governing the Debtor-in-Possession financing thereunder (the “DIP Loan Documents”). Please see the DIP Orders for additional detail.

Pursuant to the Sale Order, on the Closing, prepetition secured debt under the Final DIP ABL Order was repaid, and secured obligations under the Final Junior DIP Order were rolled into new financing of the Buyer and otherwise discharged as against the Debtors.

Payment of Pre-Petition Claims Pursuant to Court Orders. Within the first two days of the Debtors’ chapter 11 cases, the Bankruptcy Court entered orders (the “First Day Orders”) authorizing, but not directing, the Debtors to pay, on an interim basis, certain pre-petition (a) claims of critical vendors, shippers, warehousemen, other lien claimants,

In re: Sears Holdings Corporation,et al.

Debtors

Case No. 18-23538 (RDD)

Reporting Period: September 1 – October 5, 2019

Federal Tax I.D. # 20-1920798

and foreign creditors; (b) taxes; (c) employee wages, salaries and other compensation and benefits; and (d) obligations related to the use of the Debtors’ cash management system, among other things. On November 16, 2018, the Bankruptcy Court approved the relief requested in connection with the First Day Orders on a final basis, except for the Final Cash Management Order, which was entered on December 21, 2018. To the extent any payments were made on account of such claims or obligations following the commencement of these chapter 11 cases pursuant to the authority granted to the Debtors by the Bankruptcy Court under the First Day Orders, such payments have been included in the MOR unless otherwise noted.

As stated above, pursuant to the Sale Order, on the Closing, prepetition secured debt under the Final DIP ABL Order was repaid, and secured obligations under the Final Junior DIP Order were rolled into new financing of the Buyer and otherwise discharged as against the Debtors.

Reservation of Rights.The Debtors reserve all rights to amend or supplement the MOR in all respects, as may be necessary or appropriate. Nothing contained in this MOR shall constitute a waiver of any of the Debtors’ rights or an admission with respect to their chapter 11 cases.

Specific MOR Disclosures.

Notes to MOR-la: The net cash receipts represent cash received by each Debtor assigned bank account and excludes the “flow through” disbursements used to pay the Buyer’s accounts payable and payroll.

Notes to MOR-1b:Certain Debtors make disbursements on behalf of other Debtors. The net cash disbursements represent cash disbursed by the applicable Debtor excluding disbursements made on behalf of other Debtors, which are reflected on the accounts of the Debtors on whose behalf they are made. The total disbursements (for quarterly fee purposes) represent the disbursements made on behalf of each affiliated Debtor and excludes the “flow through” disbursements used to pay the Buyer’s accounts payable and payroll.

Notes to MOR-1c.1 & 1c.2: All amounts listed are the bank balances as of the dates in the footnotes on MOR-1c.2. The Debtors have, on a timely basis, performed bank account reconciliations in the ordinary course of business. Due to the level of detailed records, copies of the bank account statements and reconciliations are available for inspection only upon request.

Notes to MOR-1d:This MOR lists the professional fees paid during this reporting period to Restructuring Professionals retained by the Debtors in these chapter 11 cases.

Notes to MOR-2 & MOR-3: The amounts currently classified as liabilities subject to compromise may be subject to future adjustments depending on Bankruptcy

In re: Sears Holdings Corporation,et al.

Debtors

Case No. 18-23538 (RDD)

Reporting Period: September 1 – October 5, 2019

Federal Tax I.D. # 20-1920798

Court actions, payments pursuant to Bankruptcy Court orders, further developments with respect to, among other things, the reconciliation and adjudication of claims, determinations of the secured status of certain claims, the value of any collateral securing such claims, rejection of executory contracts, or other events. The following balance sheet accounts have been reclassified to liabilities subject to compromise (“LSTC”) for this reporting period: short-term borrowings, current portion of long-term debt, intercompany payables, certain other current liabilities, long-term debt, unearned revenues and other long-term liabilities. These LSTC are offset by investment in non-debtor subsidiaries and with the following recorded in prepaid expenses and other current assets and other long-term assets: deferred tax credits, tax credits, and deferred acquisition costs related to new protection service agreements. Intercompany receivables and payables between the Debtors and non-debtor entities net to zero in the Debtors’ consolidated balance sheet. The Debtors continue to evaluate their assets and liabilities, and any adjustments will be reflected in next month’s MOR.

Notes to MOR-4a:For status of post-petition tax payments, see disclosures as noted on MOR-4a. Due to the size and detail of such records, (i) copies of IRS Form 6123 or payment receipts; (ii) copies of tax returns filed during the reporting period; and (iii) a taxes aging schedule will be made available upon reasonable request in writing to bankruptcy counsel for the Debtors.

Notes to MOR-4b: As of the date of this report, there is an ongoing dispute between the Debtors and the Buyer regarding certain post-petition payables.

Notes to MOR-4c: As of this reporting period, there is an ongoing dispute between the Debtors and the Buyer regarding certain cash and cash proceeds received by the Buyer that the Debtors believe should be transferred to the Debtors’ accounts. The Debtors have recorded a $100 million receivable due from the Buyer for the amounts in dispute, including the post-petition payables referenced in paragraph (g) of these Notes. This receivable has since been reduced for amounts received from the Buyer.

UNITED STATES BANKRUPTCY COURT

SOUTHERN DISTRICT OF NEW YORK

CORPORATE MONTHLY OPERATING REPORT


REQUIRED DOCUMENTS	Form No.		Document Attached	Explanation Attached
Schedule of Cash Receipts		MOR-1a	X
Schedule of Cash Disbursements		MOR-1b & 1b.1	X
Bank Reconciliation (or copies of debtor’s bank reconciliations)		MOR-1c.1 & 1c.2 & 1c.3	X
Copies of bank statements					Available Upon Request
Cash disbursements journals					Available Upon Request
Schedule of Retained Restructuring Professionals Fees		MOR-1d	X
Statement of Operations		MOR-2	X
Balance Sheet		MOR-3	X
Status of Post-petition Taxes		MOR-4a	X
Copies of IRS Form 6123 or payment receipt					Available Upon Request
Copies of tax returns filed during reporting period					Available Upon Request
Summary of Unpaid Post-petition Debts		MOR-4b	X
Listing of Aged Accounts Payable					Available Upon Request
Accounts Receivable Reconciliation and Aging		MOR-4c	X
Payments to Insiders		MOR-5	X
Debtor Questionnaire		MOR-6	X

I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and the attached documents are true and correct to the best of my knowledge and belief.

MOR

PAGE 1 OF 17

NOTES TO MONTHLY OPERATING REPORT

The Monthly Operating Report (“MOR”) includes activity for the following Debtors:


#	DEBTOR ENTITY NAME	FILING DATE	BANKRUPTCY CASE NUMBER	COMPLETE EIN OR OTHER TAXPAYER I.D.
1.	SEARS, ROEBUCK AND CO.	10/15/18	18-23537	36-1750680
2.	SEARS HOLDINGS CORPORATION	10/15/18	18-23538	20-1920798
3.	KMART HOLDING CORPORATION	10/15/18	18-23539	32-0073116
4.	KMART OPERATIONS LLC	10/15/18	18-23540	32-0456546
5.	SEARS OPERATIONS LLC	10/15/18	18-23541	35-2524331
6.	SERVICELIVE, INC.	10/15/18	18-23542	36-4616774
7.	A&E FACTORY SERVICE, LLC	10/15/18	18-23543	36-4486695
8.	A&E HOME DELIVERY, LLC	10/15/18	18-23544	37-1500205
9.	A&E LAWN & GARDEN, LLC	10/15/18	18-23545	13-4275028
10.	A&E SIGNATURE SERVICE, LLC	10/15/18	18-23546	37-1500204
11.	FBA HOLDINGS INC.	10/15/18	18-23547	36-4186537
12.	INNOVEL SOLUTIONS, INC.	10/15/18	18-23548	36-1857180
13.	KMART CORPORATION	10/15/18	18-23549	38-0729500
14.	MAXSERV, INC.	10/15/18	18-23550	74-2707626
15.	PRIVATE BRANDS, LTD.	10/15/18	18-23551	55-0544022
16.	SEARS DEVELOPMENT CO.	10/15/18	18-23552	36-2476028
17.	SEARS HOLDINGS MANAGEMENT CORPORATION	10/15/18	18-23553	20-3592148
18.	SEARS HOME & BUSINESS FRANCHISES, INC.	10/15/18	18-23554	98-0126742
19.	SEARS HOME IMPROVEMENT PRODUCTS, INC.	10/15/18	18-23555	25-1698591
20.	SEARS INSURANCE SERVICES, L.L.C.	10/15/18	18-23556	36-4287182
21.	SEARS PROCUREMENT SERVICES, INC.	10/15/18	18-23557	30-0092859
22.	SEARS PROTECTION COMPANY	10/15/18	18-23558	36-4471250
23.	SEARS PROTECTION COMPANY (PR) INC.	10/15/18	18-23559	66-0704861
24.	SEARS ROEBUCK ACCEPTANCE CORP.	10/15/18	18-23560	51-0080535
25.	SR-ROVER DE PUERTO RICO, LLC (f/k/a SEARS, ROEBUCK DE PUERTO RICO, INC.)	10/15/18	18-23561	66-0233626
26.	SYW RELAY LLC	10/15/18	18-23562	35-2561870
27.	WALLY LABS LLC	10/15/18	18-23563	None
28.	BIG BEAVER OF FLORIDA DEVELOPMENT, LLC	10/15/18	18-23564	None
29.	CALIFORNIA BUILDER APPLIANCES, INC.	10/15/18	18-23565	68-0406327
30.	FLORIDA BUILDER APPLIANCES, INC.	10/15/18	18-23566	36-3619133
31.	KBL HOLDING INC.	10/15/18	18-23567	26-0031295
32.	KLC, INC.	10/15/18	18-23568	75-2490839
33.	SEARS PROTECTION COMPANY (FLORIDA), LLC	10/15/18	18-23569	20-0224239
34.	KMART OF WASHINGTON LLC	10/15/18	18-23570	61-1448898
35.	KMART STORES OF ILLINOIS LLC	10/15/18	18-23571	61-1448897
36.	KMART STORES OF TEXAS LLC	10/15/18	18-23572	61-1448915
37.	MYGOFER LLC	10/15/18	18-23573	26-4005531
38.	ROVER BRANDS BUSINESS UNIT, LLC	10/15/18	18-23574	42-1564658
39.	SEARS HOLDINGS PUBLISHING COMPANY, LLC	10/15/18	18-23575	26-0075554
40.	KMART OF MICHIGAN, INC.	10/15/18	18-23576	38-3551696
41.	SHC DESERT SPRINGS, LLC	10/15/18	18-23577	None
42.	SOE, INC.	10/15/18	18-23578	83-0399616
43.	STARWEST, LLC	10/15/18	18-23579	37-1495379
44.	STI MERCHANDISING, INC.	10/15/18	18-23580	38-2760188
45.	TROY COOLIDGE NO. 13, LLC	10/15/18	18-23581	None
46.	BLUELIGHT.COM, INC.	10/15/18	18-23582	77-0527034
47.	SEARS BRANDS, L.L.C.	10/15/18	18-23583	42-1564664
48.	SEARS BUYING SERVICES, INC.	10/15/18	18-23584	36-3256533
49.	KMART.COM LLC	10/15/18	18-23585	77-0529022
50.	SEARS BRANDS MANAGEMENT CORPORATION	10/15/18	18-23586	36-2555365
51.	SHC LICENSED BUSINESS LLC	10/18/18	18-23616	37-1783718
52.	SHC PROMOTIONS LLC	10/22/18	18-23630	26-4209626
53.	SRE HOLDING CORPORATION	1/7/19	19-22031	46-4344816

Notes to MOR

PAGE 2 OF 17

SCHEDULE OF RECEIPTS


#	DEBTOR ENTITY NAME	BANKRUPTCY CASE NUMBER	NET CASH RECEIPTS (a)
1.	SEARS, ROEBUCK AND CO.	18-23537	$	6,361,094
2.	SEARS HOLDINGS CORPORATION	18-23538		—
3.	KMART HOLDING CORPORATION	18-23539		—
4.	KMART OPERATIONS LLC	18-23540		—
5.	SEARS OPERATIONS LLC	18-23541		—
6.	SERVICELIVE, INC.	18-23542		—
7.	A&E FACTORY SERVICE, LLC	18-23543		—
8.	A&E HOME DELIVERY, LLC	18-23544		—
9.	A&E LAWN & GARDEN, LLC	18-23545		—
10.	A&E SIGNATURE SERVICE, LLC	18-23546		—
11.	FBA HOLDINGS INC.	18-23547		—
12.	INNOVEL SOLUTIONS, INC.	18-23548		—
13.	KMART CORPORATION	18-23549		—
14.	MAXSERV, INC.	18-23550		—
15.	PRIVATE BRANDS, LTD.	18-23551		—
16.	SEARS DEVELOPMENT CO.	18-23552		—
17.	SEARS HOLDINGS MANAGEMENT CORPORATION	18-23553		—
18.	SEARS HOME & BUSINESS FRANCHISES, INC.	18-23554		—
19.	SEARS HOME IMPROVEMENT PRODUCTS, INC	18-23555		—
20.	SEARS INSURANCE SERVICES, L.L.C.	18-23556		—
21.	SEARS PROCUREMENT SERVICES, INC.	18-23557		—
22.	SEARS PROTECTION COMPANY	18-23558		—
23.	SEARS PROTECTION COMPANY (PR) INC.	18-23559		—
24.	SEARS ROEBUCK ACCEPTANCE CORP.	18-23560		—
25.	SR-ROVER DE PUERTO RICO, LLC (f/k/a SEARS, ROEBUCK DE PUERTO RICO, INC.)	18-23561		—
26.	SYW RELAY LLC	18-23562		—
27.	WALLY LABS LLC	18-23563		—
28.	BIG BEAVER OF FLORIDA DEVELOPMENT, LLC	18-23564		—
29.	CALIFORNIA BUILDER APPLIANCES, INC.	18-23565		—
30.	FLORIDA BUILDER APPLIANCES, INC.	18-23566		—
31.	KBL HOLDING INC.	18-23567		—
32.	KLC, INC.	18-23568		—
33.	SEARS PROTECTION COMPANY (FLORIDA), LLC	18-23569		—
34.	KMART OF WASHINGTON LLC	18-23570		—
35.	KMART STORES OF ILLINOIS LLC	18-23571		—
36.	KMART STORES OF TEXAS LLC	18-23572		—
37.	MYGOFER LLC	18-23573		—
38.	ROVER BRANDS BUSINESS UNIT, LLC	18-23574		—
39.	SEARS HOLDINGS PUBLISHING COMPANY, LLC	18-23575		—
40.	KMART OF MICHIGAN, INC.	18-23576		—
41.	SHC DESERT SPRINGS, LLC	18-23577		—
42.	SOE, INC.	18-23578		—
43.	STARWEST, LLC	18-23579		—
44.	STI MERCHANDISING, INC.	18-23580		—
45.	TROY COOLIDGE NO. 13, LLC	18-23581		—
46.	BLUELIGHT.COM, INC.	18-23582		—
47.	SEARS BRANDS, L.L.C.	18-23583		—
48.	SEARS BUYING SERVICES, INC.	18-23584		—
49.	KMART.COM LLC	18-23585		—
50.	SEARS BRANDS MANAGEMENT CORPORATION	18-23586		—
51.	SHC LICENSED BUSINESS LLC	18-23616		—
52.	SHC PROMOTIONS LLC	18-23630		—
53.	SRE HOLDING CORPORATION	19-22031		—

	TOTAL		$	6,361,094

Footnote:

(a)	The net cash receipts represent cash received by each Debtor’s assigned bank account and excludes the “flow through” disbursements used to pay the Buyer’s accounts payable and payroll.

MOR-1a

PAGE 3 OF 17

SCHEDULE OF DISBURSEMENTS


#		DEBTOR ENTITY NAME	BANKRUPTCY CASE NUMBER		NET CASH DISBURSEMENTS (a)			PLUS: ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES (i.e. escrow accounts)		TOTAL DISBURSEMENTS (FOR QUARTERLY FEE PURPOSES)			F/N
	1.	SEARS, ROEBUCK AND CO.		18-23537	$	1,185,332			—	$	1,185,332
	2.	SEARS HOLDINGS CORPORATION		18-23538		49,997			—		49,997			(b)
	3.	KMART HOLDING CORPORATION		18-23539		—			—		—
	4.	KMART OPERATIONS LLC		18-23540		—			—		—
	5.	SEARS OPERATIONS LLC		18-23541		34,311			—		34,311
	6.	SERVICELIVE, INC.		18-23542		100			—		100
	7.	A&E FACTORY SERVICE, LLC		18-23543		—			—		—
	8.	A&E HOME DELIVERY, LLC		18-23544		—			—		—
	9.	A&E LAWN & GARDEN, LLC		18-23545		—			—		—
	10.	A&E SIGNATURE SERVICE, LLC		18-23546		—			—		—
	11.	FBA HOLDINGS INC.		18-23547		—			—		—
	12.	INNOVEL SOLUTIONS, INC.		18-23548		3,627			—		3,627
	13.	KMART CORPORATION		18-23549		11,225			—		11,225
	14.	MAXSERV, INC.		18-23550		—			—		—
	15.	PRIVATE BRANDS, LTD.		18-23551		—			—		—
	16.	SEARS DEVELOPMENT CO.		18-23552		—			—		—
	17.	SEARS HOLDINGS MANAGEMENT CORPORATION		18-23553		37,948			—		37,948
	18.	SEARS HOME & BUSINESS FRANCHISES, INC.		18-23554		—			—		—
	19.	SEARS HOME IMPROVEMENT PRODUCTS, INC		18-23555		198			—		198
	20.	SEARS INSURANCE SERVICES, L.L.C.		18-23556		—			—		—
	21.	SEARS PROCUREMENT SERVICES, INC.		18-23557		—			—		—
	22.	SEARS PROTECTION COMPANY		18-23558		—			—		—
	23.	SEARS PROTECTION COMPANY (PR) INC.		18-23559		—			—		—
	24.	SEARS ROEBUCK ACCEPTANCE CORP.		18-23560		—			—		—
	25.	SR-ROVER DE PUERTO RICO, LLC (f/k/a SEARS, ROEBUCK DE PUERTO RICO, INC.)		18-23561		1,372			—		1,372
	26.	SYW RELAY LLC		18-23562		—			—		—
	27.	WALLY LABS LLC		18-23563		—			—		—
	28.	BIG BEAVER OF FLORIDA DEVELOPMENT, LLC		18-23564		—			—		—
	29.	CALIFORNIA BUILDER APPLIANCES, INC.		18-23565		350			—		350
	30.	FLORIDA BUILDER APPLIANCES, INC.		18-23566		—			—		—
	31.	KBL HOLDING INC.		18-23567		—			—		—
	32.	KLC, INC.		18-23568		—			—		—
	33.	SEARS PROTECTION COMPANY (FLORIDA), LLC		18-23569		—			—		—
	34.	KMART OF WASHINGTON LLC		18-23570		12			—		12
	35.	KMART STORES OF ILLINOIS LLC		18-23571		—			—		—
	36.	KMART STORES OF TEXAS LLC		18-23572		39			—		39
	37.	MYGOFER LLC		18-23573		—			—		—
	38.	ROVER BRANDS BUSINESS UNIT, LLC		18-23574		—			—		—
	39.	SEARS HOLDINGS PUBLISHING COMPANY, LLC		18-23575		—			—		—
	40.	KMART OF MICHIGAN, INC.		18-23576		31			—		31
	41.	SHC DESERT SPRINGS, LLC		18-23577		—			—		—
	42.	SOE, INC.		18-23578		(2,402	)		—		(2,402	)		(c)
	43.	STARWEST, LLC		18-23579		—			—		—
	44.	STI MERCHANDISING, INC.		18-23580		—			—		—
	45.	TROY COOLIDGE NO. 13, LLC		18-23581		—			—		—
	46.	BLUELIGHT.COM, INC.		18-23582		—			—		—
	47.	SEARS BRANDS, L.L.C.		18-23583		—			—		—
	48.	SEARS BUYING SERVICES, INC.		18-23584		—			—		—
	49.	KMART.COM LLC		18-23585		—			—		—
	50.	SEARS BRANDS MANAGEMENT CORPORATION		18-23586		—			—		—
	51.	SHC LICENSED BUSINESS LLC		18-23616		—			—		—
	52.	SHC PROMOTIONS LLC		18-23630		—			—		—
	53.	SRE HOLDING CORPORATION		19-22031		—			—		—

		TOTAL			$	1,322,141			—	$	1,322,141

Footnote(s):

(a)

The net cash disbursements represent cash disbursed by the Debtor entity excluding disbursements made on behalf of other Debtor entities, which are reflected on the accounts of the Debtors on whose behalf they are made. “Flow through” disbursements used to pay the Buyer’s accounts payable and payroll are excluded.

(b)	Sears Holdings Corporation (18-23538) disbursements made by outside sources represent professional fee payments.

(c)	SOE, Inc. ($2,402) represents a reversal of payroll expense from August 2019 report, net zero for the Q3’19.

MOR-1b

PAGE 4 OF 17

QTD SUMMARY OF DISBURSEMENTS BY DEBTOR


					Q3’19
			BANKRUPTCY		TOTAL DISBURSEMENTS (FOR QUARTERLY FEE PURPOSES)		TOTAL DISBURSEMENTS (FOR QUARTERLY FEE PURPOSES)		TOTAL DISBURSEMENTS (FOR QUARTERLY FEE PURPOSES)			QTD TOTAL DISBURSEMENTS (FOR QUARTERLY FEE PURPOSES)
#		DEBTOR ENTITY NAME	CASE NUMBER		JUL. 7 - AUG. 3, 2019		AUG. 4 - 31, 2019		SEP. 1 - OCT. 5, 2019			JUL. 7 - OCT. 5, 2019
	1.	SEARS, ROEBUCK AND CO.		18-23537	$	848,097	$	566,578	$	1,185,332		$	2,600,008
	2.	SEARS HOLDINGS CORPORATION		18-23538		37,199,118		9,650,402		49,997			46,899,517
	3.	KMART HOLDING CORPORATION		18-23539		—		—		—			—
	4.	KMART OPERATIONS LLC		18-23540		2,738		32,989		—			35,727
	5.	SEARS OPERATIONS LLC		18-23541		80,732		69,816		34,311			184,859
	6.	SERVICELIVE, INC.		18-23542		—		—		100			100
	7.	A&E FACTORY SERVICE, LLC		18-23543		2,761		—		—			2,761
	8.	A&E HOME DELIVERY, LLC		18-23544		—		—		—			—
	9.	A&E LAWN & GARDEN, LLC		18-23545		—		—		—			—
	10.	A&E SIGNATURE SERVICE, LLC		18-23546		—		—		—			—
	11.	FBA HOLDINGS INC.		18-23547		—		—		—			—
	12.	INNOVEL SOLUTIONS, INC.		18-23548		239,135		1,694		3,627			244,456
	13.	KMART CORPORATION		18-23549		59,001		133,194		11,225			203,420
	14.	MAXSERV, INC.		18-23550		—		—		—			—
	15.	PRIVATE BRANDS, LTD.		18-23551		—		—		—			—
	16.	SEARS DEVELOPMENT CO.		18-23552		—		—		—			—
	17.	SEARS HOLDINGS MANAGEMENT CORPORATION		18-23553		18,654		21,719		37,948			78,322
	18.	SEARS HOME & BUSINESS FRANCHISES, INC.		18-23554		—		—		—			—
	19.	SEARS HOME IMPROVEMENT PRODUCTS, INC		18-23555		68		—		198			266
	20.	SEARS INSURANCE SERVICES, L.L.C.		18-23556		—		—		—			—
	21.	SEARS PROCUREMENT SERVICES, INC.		18-23557		—		—		—			—
	22.	SEARS PROTECTION COMPANY		18-23558		200		16,302		—			16,502
	23.	SEARS PROTECTION COMPANY (PR) INC.		18-23559		—		—		—			—
	24.	SEARS ROEBUCK ACCEPTANCE CORP.		18-23560		—		—		—			—
	25.	SR-ROVER DE PUERTO RICO, LLC (f/k/a SEARS, ROEBUCK DE PUERTO RICO, INC.)		18-23561		—		—		1,372			1,372
	26.	SYW RELAY LLC		18-23562		—		—		—			—
	27.	WALLY LABS LLC		18-23563		—		—		—			—
	28.	BIG BEAVER OF FLORIDA DEVELOPMENT, LLC		18-23564		—		—		—			—
	29.	CALIFORNIA BUILDER APPLIANCES, INC.		18-23565		13,290		—		350			13,640
	30.	FLORIDA BUILDER APPLIANCES, INC.		18-23566		—		—		—			—
	31.	KBL HOLDING INC.		18-23567		—		—		—			—
	32.	KLC, INC.		18-23568		—		—		—			—
	33.	SEARS PROTECTION COMPANY (FLORIDA), LLC		18-23569		—		—		—			—
	34.	KMART OF WASHINGTON LLC		18-23570		74		67		12			153
	35.	KMART STORES OF ILLINOIS LLC		18-23571		512		616		—			1,128
	36.	KMART STORES OF TEXAS LLC		18-23572		—		—		39			39
	37.	MYGOFER LLC		18-23573		—		—		—			—
	38.	ROVER BRANDS BUSINESS UNIT, LLC		18-23574		—		—		—			—
	39.	SEARS HOLDINGS PUBLISHING COMPANY, LLC		18-23575		—		—		—			—
	40.	KMART OF MICHIGAN, INC.		18-23576		22		—		31			53
	41.	SHC DESERT SPRINGS, LLC		18-23577		—		—		—			—
	42.	SOE, INC.		18-23578		—		2,402		(2,402	)		—
	43.	STARWEST, LLC		18-23579		—		—		—			—
	44.	STI MERCHANDISING, INC.		18-23580		—		—		—			—
	45.	TROY COOLIDGE NO. 13, LLC		18-23581		—		—		—			—
	46.	BLUELIGHT.COM, INC.		18-23582		—		—		—			—
	47.	SEARS BRANDS, L.L.C.		18-23583		—		—		—			—
	48.	SEARS BUYING SERVICES, INC.		18-23584		—		—		—			—��
	49.	KMART.COM LLC		18-23585		—		—		—			—
	50.	SEARS BRANDS MANAGEMENT CORPORATION		18-23586		—		—		—			—
	51.	SHC LICENSED BUSINESS LLC		18-23616		—		—		—			—
	52.	SHC PROMOTIONS LLC		18-23630		—		—		—			—
	53.	SRE HOLDING CORPORATION		19-22031		—		—		—			—

		Total			$	38,464,403	$	10,495,780	$	1,322,141		$	50,282,324

MOR-1b.1

PAGE 5 OF 17

BANK ACCOUNT INFORMATION


#	LEGAL ENTITY	CASE NUMBER	BANK	LAST 4 DIGITS ACCOUNT #		BANK BALANCE		F/N
Debtor Bank Accounts Opened Pre-Closing (Open)
1.	Kmart Corporation	18-23549	Bank of America, N.A.		3816	$	2,826	(a)
2.	Kmart Corporation	18-23549	Bank of America, N.A.		5450		10,000,000	(b)
3.	Kmart Corporation	18-23549	Bank of America, N.A.		8978		3,393,612	(b)
4.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		6570		53,408,130	(b)
5.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		8279		490,835	(b)
6.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		8965		43,502,357	(b)
7.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		9540		—	(b)

Debtor Bank Accounts Opened Post-Closing
8.	Sears Holdings Corporation	18-23538	Axos Bank		0143		1,757,032	(c)
9.	Sears Holdings Management Corporation	18-23553	Bank of America, N.A.		7354		—	(a)
10.	Sears Roebuck Acceptance Corp.	18-23560	Bank of America, N.A.		8036		535	(a)
11.	Kmart Corporation	18-23549	Bank of America, N.A.		7257		—	(a)
12.	Kmart Corporation	18-23549	Bank of America, N.A.		7260		215,619	(a)
13.	Kmart Corporation	18-23549	Bank of America, N.A.		7338		—	(a)
14.	Kmart Corporation	18-23549	Bank of America, N.A.		7341		—	(a)
15.	Kmart Corporation	18-23549	Bank of America, N.A.		8751		—	(a)
16.	Kmart Corporation	18-23549	Bank of America, N.A.		8968		—	(a)
17.	Kmart Corporation	18-23549	Bank of America, N.A.		8971		—	(a)
18.	Kmart Corporation	18-23549	Bank of America, N.A.		8984		—	(a)
19.	Sears Holdings Management Corporation	18-23553	Bank of America, N.A.		7367		—	(a)
20.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		7231		—	(b)
21.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		7244		2,686,913	(a)
22.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		7312		—	(a)
23.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		7325		—	(a)
24.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		8764		—	(a)
25.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		8997		50,801	(a)
26.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		9006		—	(a)
27.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		9019		—	(a)

Debtor Bank Accounts Opened Pre-Closing (Closed)
28.	Kmart Corporation	18-23549	BancorpSouth		3945		—	(d)
29.	Kmart Corporation	18-23549	Bank of America, N.A.		2637		N/A	(d)
30.	Kmart Corporation	18-23549	Bank of America, N.A.		3428		N/A	(d)
31.	Kmart Corporation	18-23549	Bank of America, N.A.		3884		N/A	(d)
32.	Kmart Corporation	18-23549	Bank of America, N.A.		4067		N/A	(d)
33.	Kmart Corporation	18-23549	Bank of America, N.A.		4339		N/A	(d)
34.	Kmart Corporation	18-23549	Bank of America, N.A.		6688		N/A	(d)
35.	Kmart Corporation	18-23549	Bank of America, N.A.		8793		N/A	(d)
36.	Kmart Corporation	18-23549	Bank of America, N.A.		8832		N/A	(d)
37.	Kmart Corporation	18-23549	Bank Of Oklahoma		5769		—	(d)
38.	Kmart Corporation	18-23549	Capital One Bank		9632		—	(d)
39.	Kmart Corporation	18-23549	Cherokee State Bank		0494		—	(d)
40.	Kmart Corporation	18-23549	Fidelity Bank		2180		—	(d)
41.	Kmart Corporation	18-23549	First and Farmers Bank		0543		—	(d)
42.	Kmart Corporation	18-23549	First Interstate Bank of Riverton		1274		—	(d)
43.	Kmart Corporation	18-23549	First National Bank		0001		—	(d)
44.	Kmart Corporation	18-23549	First National Bank of Grayson		4081		—	(d)
45.	Kmart Corporation	18-23549	First Tennessee		0555		—	(d)
46.	Kmart Corporation	18-23549	Hilltop National Bank		4003		—	(d)
47.	Kmart Corporation	18-23549	M&T Bank		2880		—	(d)
48.	Kmart Corporation	18-23549	NorState Federal Credit Union		6752		—	(d)

MOR-1c.1

PAGE 6 OF 17

BANK ACCOUNT INFORMATION


#	LEGAL ENTITY	CASE NUMBER	BANK	LAST 4 DIGITS ACCOUNT #		BANK BALANCE		F/N
49.	Kmart Corporation	18-23549	Old National Bank		5501		—	(d)
50.	Kmart Corporation	18-23549	PNC Bank		5929		—	(d)
51.	Kmart Corporation	18-23549	United Missouri Bank		3100		—	(d)
52.	Kmart Corporation	18-23549	United Missouri Bank		4642		—	(d)
53.	Kmart Corporation	18-23549	Wells Fargo		5915		—	(d)
54.	Kmart Corporation	18-23549	Zions National Bank		6778		—	(d)
55.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		0422		N/A	(d)
56.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		1496		N/A	(d)
57.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		1561		N/A	(d)
58.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		1579		N/A	(d)
59.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		2154		N/A	(d)
60.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		2439		N/A	(d)
61.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		2648		N/A	(d)
62.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		5505		N/A	(d)
63.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		6350		N/A	(d)
64.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		6388		N/A	(d)
65.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		8492		N/A	(d)
66.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		8501		N/A	(d)
67.	Sears, Roebuck and Co.	18-23537	PNC Bank		2095		—	(d)
68.	Sears, Roebuck and Co.	18-23537	Regions Bank		3439		—	(d)
69.	Sears, Roebuck and Co.	18-23537	Regions Bank		5722		—	(d)
70.	Sears, Roebuck and Co.	18-23537	Wells Fargo		5907		—	(d)

MOR-1c.1

PAGE 7 OF 17

BANK ACCOUNT INFORMATION (CON’T)

Footnote(s):

(a)	The bank statement(s) are for the period from 8/31/19 through 10/4/19.

(b)	The bank statement(s) are for the period from 8/31/19 through 9/30/19.

(c)	The bank statement(s) are for the period from 9/3/19 through 9/30/19.

(d)	The bank account(s) have been closed.

MOR-1c.2

PAGE 8 OF 17

BANK ACCOUNT INFORMATION


#		LEGAL ENTITY	CASE NUMBER	BANK	LAST 4 DIGITS ACCOUNT #
	Bank Accounts Transferred to Buyer at Closing
	1.	California Builder Appliances, Inc.	18-23565	Bank of America, N.A.		6850
	2.	Florida Builder Appliances, Inc.	18-23566	Bank of America, N.A.		7770
	3.	Innovel Solutions, Inc.	18-23548	Bank of America, N.A.		3618
	4.	Kmart Corporation	18-23549	Banco Popular		0247
	5.	Kmart Corporation	18-23549	Banco Popular		6180
	6.	Kmart Corporation	18-23549	Bank of America, N.A.		0136
	7.	Kmart Corporation	18-23549	Bank of America, N.A.		0508
	8.	Kmart Corporation	18-23549	Bank of America, N.A.		0986
	9.	Kmart Corporation	18-23549	Bank of America, N.A.		0994
	10.	Kmart Corporation	18-23549	Bank of America, N.A.		1000
	11.	Kmart Corporation	18-23549	Bank of America, N.A.		2102
	12.	Kmart Corporation	18-23549	Bank of America, N.A.		3295
	13.	Kmart Corporation	18-23549	Bank of America, N.A.		3531
	14.	Kmart Corporation	18-23549	Bank of America, N.A.		3896
	15.	Kmart Corporation	18-23549	Bank of America, N.A.		3929
	16.	Kmart Corporation	18-23549	Bank of America, N.A.		4404
	17.	Kmart Corporation	18-23549	Bank of America, N.A.		6005
	18.	Kmart Corporation	18-23549	Bank of America, N.A.		6911
	19.	Kmart Corporation	18-23549	Bank of America, N.A.		7539
	20.	Kmart Corporation	18-23549	Bank of America, N.A.		7542
	21.	Kmart Corporation	18-23549	Bank of America, N.A.		7555
	22.	Kmart Corporation	18-23549	Bank of America, N.A.		7743
	23.	Kmart Corporation	18-23549	Bank of America, N.A.		7756
	24.	Kmart Corporation	18-23549	Bank of America, N.A.		7769
	25.	Kmart Corporation	18-23549	Bank of America, N.A.		7772
	26.	Kmart Corporation	18-23549	Bank of America, N.A.		7785
	27.	Kmart Corporation	18-23549	Bank of America, N.A.		7798
	28.	Kmart Corporation	18-23549	Bank of America, N.A.		7808
	29.	Kmart Corporation	18-23549	Bank of America, N.A.		7811
	30.	Kmart Corporation	18-23549	Bank of America, N.A.		7824
	31.	Kmart Corporation	18-23549	Bank of America, N.A.		7837
	32.	Kmart Corporation	18-23549	Bank of America, N.A.		7970
	33.	Kmart Corporation	18-23549	BB&T Bank		8654
	34.	Kmart Corporation	18-23549	Citizens Bank		7910
	35.	Kmart Corporation	18-23549	First Bank and Trust Company		9130
	36.	Kmart Corporation	18-23549	First Hawaiian Bank		0940
	37.	Kmart Corporation	18-23549	First Interstate Bank of Billings NA		2277
	38.	Kmart Corporation	18-23549	First Interstate Bank of Billings NA		3730
	39.	Kmart Corporation	18-23549	First Security		7014
	40.	Kmart Corporation	18-23549	First Security		9005
	41.	Kmart Corporation	18-23549	First State Bank		6705
	42.	Kmart Corporation	18-23549	Iowa State Bank		4408
	43.	Kmart Corporation	18-23549	NBT Bank		0573
	44.	Kmart Corporation	18-23549	PNC Bank		0169
	45.	Kmart Corporation	18-23549	PNC Bank		3334
	46.	Kmart Corporation	18-23549	PNC Bank		9553

MOR-1c.3

PAGE 9 OF 17

BANK ACCOUNT INFORMATION


#		LEGAL ENTITY	CASE NUMBER	BANK	LAST 4 DIGITS ACCOUNT #
	47.	Kmart Corporation	18-23549	Union Bank		0694
	48.	Kmart Corporation	18-23549	Union Bank		1583
	49.	Kmart Corporation	18-23549	United Missouri Bank		0553
	50.	Kmart Corporation	18-23549	Wells Fargo		0318
	51.	Sears Holdings Corporation	18-23538	Bank of America, N.A.		4266
	52.	Sears Holdings Corporation	18-23538	Bank of America, N.A.		6719
	53.	Sears Holdings Management Corporation	18-23553	Bank of America, N.A.		5426
	54.	Sears Holdings Management Corporation	18-23553	Bank of America, N.A.		6338
	55.	Sears Holdings Management Corporation	18-23553	Bank of America, N.A.		6722
	56.	Sears Holdings Management Corporation	18-23553	KeyBank		1056
	57.	Sears Protection Company	18-23558	Bank of America, N.A.		4583
	58.	Sears Protection Company (Florida), LLC	18-23569	Bank of America, N.A.		4596
	59.	Sears Protection Company (PR), Inc.	18-23561	Banco Popular		1580
	60.	Sears Protection Company (PR), Inc.	18-23559	Banco Popular		5678
	61.	Sears Protection Company (PR), Inc.	18-23561	Banco Popular		7665
	62.	Sears Roebuck Acceptance Corp.	18-23560	Bank of America, N.A.		0955
	63.	Sears Roebuck Acceptance Corp.	18-23560	Bank of America, N.A.		6815
	64.	Sears Roebuck Acceptance Corp.	18-23560	Bank of America, N.A.		9512
	65.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		0149
	66.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		0556
	67.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		0895
	68.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		0903
	69.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		0911
	70.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		0929
	71.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		0945
	72.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		0952
	73.	Sears, Roebuck and Co.	18-23555	Bank of America, N.A.		0978
	74.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		1451
	75.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		1595
	76.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		3107
	77.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		3266
	78.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		4120
	79.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		4205
	80.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		4394
	81.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		5261
	82.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		5468
	83.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		5885
	84.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		6654
	85.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		6667
	86.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		7607
	87.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		7776
	88.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		7802
	89.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		7828
	90.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		7831
	91.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		7844
	92.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		7857
	93.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		7969

MOR-1c.3

PAGE 10 OF 17

BANK ACCOUNT INFORMATION


#		LEGAL ENTITY	CASE NUMBER	BANK	LAST 4 DIGITS ACCOUNT #
	94.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		7972
	95.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		8855
	96.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		8868
	97.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		8871
	98.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		8884
	99.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		8960
	100.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		8973
	101.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		8981
	102.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		8986
	103.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		8994
	104.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		9415
	105.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		9457
	106.	Sears, Roebuck and Co.	18-23537	Bank of America, N.A.		9939
	107.	Sears, Roebuck and Co.	18-23537	Bank Of Oklahoma		1048
	108.	Sears, Roebuck and Co.	18-23537	Capital One Bank		4557
	109.	Sears, Roebuck and Co.	18-23537	Capital One Bank		9999
	110.	Sears, Roebuck and Co.	18-23537	Citizens Bank		3397
	111.	Sears, Roebuck and Co.	18-23537	First Hawaiian Bank		8911
	112.	Sears, Roebuck and Co.	18-23537	First Tennessee		0003
	113.	Sears, Roebuck and Co.	18-23537	KeyBank		4236
	114.	Sears, Roebuck and Co.	18-23537	PNC Bank		2515
	115.	Sears, Roebuck and Co.	18-23537	PNC Bank		3342
	116.	Sears, Roebuck and Co.	18-23537	PNC Bank		3424
	117.	Sears, Roebuck and Co.	18-23537	Regions Bank		5433
	118.	Sears, Roebuck and Co.	18-23537	Union Bank		0686
	119.	Sears, Roebuck and Co.	18-23537	Union Bank		4871
	120.	Sears, Roebuck and Co.	18-23537	Wells Fargo		2397
	121.	StarWest, LLC	18-23579	Bank of America, N.A.		9396

MOR-1c.3

PAGE 11 OF 17

SCHEDULE OF RETAINED RESTRUCTURING PROFESSIONAL FEE DISBURSEMENTS & US TRUSTEE FEES


PROFESSIONAL	AMOUNT PAID DURING THE REPORTING PERIOD		CUMULATIVE (a)

Estate Professionals
Weil, Gotshal & Manges LLP		—	$	53,966,671
M-III Advisory Partners LP		—		13,958,280
Wachtell, Lipton, Rosen & Katz		—		886,018
Lazard Freres & Co. LLC		—		21,410,423
Prime Clerk		—		14,710,974
Deloitte Transactions and Business Analytics LLP		—		6,674,532
Deloitte Audit		—		2,443,114
Deloitte Tax		—		3,794,131
A&G Realty Partners LLC		—		200,000
Jones Lang Lasalle Americas, Inc.		—		2,178,017
McAndrews Held & Malloy LTD		—		647,257
Total Estate Professionals		—		120,869,416

Restructuring Committee Professionals
Paul Weiss Rifkind Wharton & Garrison LLP		—		19,806,011
Young Conaway Stargatt & Taylor, LLP		—		292,146
Stout Risius Ross		—		195,775
Evercore		—		1,257,095
Alvarez & Marsal North America, LLC		—		4,567,897
Total Restructuring Committee Professionals		—		26,118,925

Creditor Committee Professionals
Akin Gump Strauss Hauer & Feld LLP		—		25,957,310
Houlihan Lokey		—		9,261,354
Herrick, Feinstein		—		323,858
FTI Consulting		—		8,068,337
Total Creditor Committee Professionals		—		43,610,860

Total Retained Professionals		—		190,599,202

US Trustee Quarterly Fees		—		6,189,739

Total Professional and US Trustee Fees		—	$	196,788,940

Footnote:

(a)	Represents payments made since the Commencement Date.

MOR-1d

PAGE 12 OF 17

STATEMENT OF OPERATIONS


Condensed & Consolidated Income Statement (a)	Reporting Period Ended October 5, 2019
	(in millions)
REVENUES
Services and other		—

Total revenues		—

COSTS AND EXPENSES
Cost of sales, buying and occupancy - merchandise sales		—

Total cost of sales, buying and occupancy		—
Selling and administrative		2
Gain on sales of assets		(5	)

Total costs and expenses		(3	)

Operating income (loss)		3
Reorganization, net		(6	)
Interest and investment income (loss)		2

Income (loss) before income taxes		(1	)
Income tax (expense) benefit		—

NET INCOME	($	1	)

Footnote:

(a)	Numbers may not foot due to rounding

MOR-2

PAGE 13 OF 17

BALANCE SHEET


Condensed & Consolidated Balance Sheet (a)(b)	As of October 5, 2019
	(in millions)
ASSETS
Current assets
Cash and Cash Equivalents	$	8
Restricted Cash		115
Accounts Receivable		64
Prepaid Expenses and Other Current Assets		15

Total Current Assets		202

Property and Equipment (net of accumulated depreciation and amortization)		9
Other Assets		16

TOTAL ASSETS	$	227


LIABILITIES
Current Liabilities
Merchandise Payables	$	38
Other Current Liabilities		28

Total Current Liabilities (Not Subject to Compromise)		66

Liabilities Subject to Compromise		6,492
Commitments and Contingencies		—

DEFICIT
Total Deficit		(6,331	)

TOTAL LIABILITIES AND DEFICIT	$	227

Footnote:

(a)	Numbers may not foot due to rounding

(b)	The Debtors continue to evaluate their assets and liabilities, and any adjustments will be reflected in next month’s MOR.

MOR-3

PAGE 14 OF 17

MOR-4a: STATUS OF POST-PETITION TAXES

Subject: Monthly Operating Report Attestation Regarding Post-Petition Taxes

The Debtors, Sears Holdings Corporation.,et al.,hereby submit this attestation regarding post-petition taxes.

All post-petition taxes for the Debtors, which are not subject to dispute or reconciliation, are current. There are no material post-petition tax disputes or reconciliations.

/s/ Mohsin Y. Meghji

Mohsin Y. Meghji

Chief Restructuring Officer

Sears Holdings Corporation,et al.

MOR-4b: SUMMARY OF UNPAID POST-PETITION VENDOR PAYABLES


	NUMBER OF DAYS PAST DUE
DESCRIPTION	CURRENT		1-30 DAYS		31-60 DAYS		61-90 DAYS		91+ DAYS		TOTAL
Combined (a)		—		—		—		—	$	37,969,813	$	37,969,813

Footnote:

(a)	The Debtors and the Buyer are currently disputing which party is responsible for certain post-petition payables.

MOR-4c: ACCOUNTS RECEIVABLE AGING


DESCRIPTION	CURRENT		1-30 DAYS		31-60 DAYS		61-90 DAYS		91+ DAYS		TOTAL
Accounts Receivable, Net (a)		—		—		—		—	$	64,057,114	$	64,057,114

Footnote:

(a)	The Debtors and the Buyer are currently disputing cash and cash proceeds received by the Buyer that the Debtors believe should be transferred to the Debtors’ accounts.

MOR-4a, 4b, 4c

PAGE 15 OF 17

PAYMENTS TO INSIDERS (a)

INSIDER PAYMENT SUMMARY (FOR THIS PERIOD ONLY)


DESCRIPTION	AMOUNT
Payments to members of the Restructuring Committee	$	100,000

Footnote(s):

(a)	The payments to insiders include payments by the Debtors to individuals who are currently directors of the Board of Sears Holdings Corporation.

Persons included as “insiders” have been included for informational purposes only. The Debtors do not concede or take any position with respect to: (i) such person’s influence over the control of the Debtors; (ii) the management responsibilities or functions of such individual; (iii) the decision-making or corporate authority of such individual; or (iv) whether such individual could successfully argue that he or she is not an “insider” under applicable law, including, without limitation, the federal securities laws or with respect to any theories of liability or for any other purpose. Further, the inclusion of a party as an “insider” is not an acknowledgement or concession that such party is an “insider” under applicable bankruptcy law.

MOR-5

PAGE 16 OF 17

MOR 6: DEBTOR QUESTIONNAIRE


Must be completed each month. If the answer to any of the questions is “Yes”, provide a detailed explanation of each item. Attach additional sheets if necessary.			Yes	No	Comments
	1.	Have any assets been sold or transferred outside the normal course of business this reporting period?		X
	2.	Have any funds been disbursed from any account other than a debtor in possession account this reporting period?		X
	3.	Is the Debtor delinquent in the timely filing of any post-petition tax returns?		X

	4.	Are workers compensation, general liability or other necessary insurance coverages expired or cancelled, or has the debtor received notice of expiration or cancellation of such policies?		X
	5.	Is the Debtor delinquent in paying any insurance premium payment?		X
	6.	Have any payments been made on pre-petition liabilities this reporting period?	X		The Buyer made payments on pre-petition liabilities as part of certain Cure Payments.
	7.	Are any post petition receivables (accounts, notes or loans) due from related parties?		X
	8.	Are any post petition payroll taxes past due?		X
	9.	Are any post petition State or Federal income taxes past due?		X
	10.	Are any post petition real estate taxes past due?		X
	11.	Are any other post petition taxes past due?		X
	12.	Have any pre-petition taxes been paid during this reporting period?	X		$27,727 was paid for W2C filings.
	13.	Are any amounts owed to post petition creditors delinquent?	X		As of 10/5/19, there are approximately $38 million in delinquent invoices payable to post petition creditors. This is due to an ongoing dispute between the Debtors’ estates and Buyer as to which entity will pay the creditors.
	14.	Are any wage payments past due?		X
	15.	Have any post petition loans been received by the Debtor from any party?		X
	16.	Is the Debtor delinquent in paying any U.S. Trustee fees?		X
	17.	Is the Debtor delinquent with any court ordered payments to attorneys or other professionals?	X		There are Ordinary Course Professionals that are owed postpetition amounts. This is due to an ongoing dispute between the Debtors’ estates and Buyer as to which entity will pay these professionals.
	18.	Have the owners or shareholders received any compensation outside of the normal course of business?		X

MOR-6

PAGE 17 OF 17

In re:SEARS HOLDINGS CORPORATION,et al.

Case No.

18-23538 (RDD)

Debtors

Reporting Period:

9/1/19 – 10/5/19

Federal Tax I.D. No.

20-1920798