Sears Canada, pensioners agree to settle

TORONTO — Sears Canada pensioners have agreed to an estimated $48 million from the insolvent retailer, dropping their bid for priority over other unsecured creditors. In a tentative settlement with the company’s court-appointed monitor, the pensioners agree to a more limited, but more certain, sum in lieu of a risky litigation which, if successful, would leave other unsecured creditors with nothing. The pensioners may yet access a bigger piece of the pie, however, as the monitor is seeking to sue Sears Holdings CEO Eddie Lampert and his ESL Investments hedge fund over a $509 million dividend they and other shareholders received from Sears Canada in 2013.