The judge presiding over Sears Holdings Corp.’s bankruptcy suggested an $82.5 million bankruptcy sale didn’t follow proper procedure and may have unfairly disadvantaged investors who bought insurance on the company’s debt. Judge Robert Drain of the U.S. Bankruptcy Court in White Plains, N.Y., said at a Thursday hearing he would consider unwinding a sale of Sears intercompany notes to one of the retailer’s largest creditors, Cyrus Capital Partners LP. Under the deal, Sears disposed of $1.4 billion of these intercompany notes...

Source: Wall Street Journal December 21, 2018 00:22 UTC