Last-minute dispute over assumption of debt threatens Sears deal

In a court hearing on Monday in which Eddie Lampert's ESL Investments was hoping to lock down its bid to buy Sears, the retailer's bankruptcy attorney, Ray Schrock, raised a dispute that could scuttle the deal. Mr. Shrock argued that ESL must assume as much as $166 million in accounts payable debt, citing a stipulation in the purchase agreement, a requirement ESL does not accept. If parties cannot reach a settlement by end of week, liquidation of the company is the most likely outcome.