The fund run by Sears Chairman Eddie Lampert, ESL Investments, submitted a $4.6 billion proposal on Thursday to help save the bankrupt retailer with the purchase of 500 stores.
Sears Holdings, which owns Sears department stores and Kmart, filed for bankruptcy on Oct. 15. In previous court filings, it has said it was in talks with ESL about a "going concern bid" that could help the company emerge from bankruptcy.
The offer outlined Thursday included up to $950 million in cash through an asset-based loan facility, a "credit bid" of $1.8 billion and the assumption of roughly $1.1 billion in liabilities. The liabilities assumed include gift cards, points from its Shop Your Way loyalty program and protection agreements from Sears Home Services. Other funds include additional cash, notes and the rollover of cash collateral.