Retailer Sears Holdings said it will appeal a court verdict ordering its subsidiary Sears, Roebuck and Co to pay about US$73.5m for breach of contract related to the redemption of certain bonds after it sold its credit-card business.

The company believes it was at liberty to redeem the bonds according to the bond indenture terms.

The judge rejected three additional accusations put forward by a bondholder group including JP Morgan Securities and subsidiaries of American International Group.

Sears said the charge will cut its fourth-quarter after-tax earnings by about $44m.