Bulletin: SA2019030

Date:
May 20, 2019
To:
All Issuing Offices
RE:
SPECIAL ALERT - Seritage Growth Properties, Inc. and other Seritage Entities

Dear Associates:

On April 17, 2019, Sears Holdings Corporation, Sears, Roebuck and Co., Sears Development Co., and related entities (collectively “Sears”) filed a Complaint (Adversary Proceeding) in the Bankruptcy Court in the Southern District of New York. 

In the Complaint, Sears alleges that “the Defendants (which include Seritage Growth Properties, Inc., Seritage Growth Properties, L.P., and other Seritage entities) stripped Sears of billions of dollars of assets” and “the purchase price paid to Sears (in a sale-and-lease-back) undervalued the transferred real estate by at least $649 million.” The remedies sought by Sears include the avoidance of Seritage real estate transfers as constructively and actually fraudulent transfers. 

Do not insure any transaction where Seritage Growth Properties, L.P., Seritage Growth Properties, Inc., or any other Seritage entity is a seller, borrower, other participant in the transaction, an investor in the owner of the land, or a predecessor in the title, unless you secure approval by Stewart Underwriting Personnel.

As a reminder, all issuing offices must search the names of the parties to the transaction, including the seller, buyer/borrower, payoff lender, and new lender, using the Special Alerts database, which may be accessed at https://specialalerts.stewart.com/ or as a link from Stewart.com and/or Virtual Underwriter.

For on-line viewing of this and other bulletins, please log onto www.vuwriter.com.

THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER  AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.

References

Bulletins Replaced:
None
Related Bulletins:
None
Underwriting Manual:
None
Exceptions Manual:
None
Forms:
None