NEW YORK (AP) — Hedge fund ESL says it stands by Sears’ decision to file for Chapter 11 bankruptcy protection, though it would have preferred to avoid a court-run process.

The hedge fund is run by now former Sears CEO Edward S. Lampert, who is also the company’s largest shareholder and has been attempting to keep the company afloat with his own money.

An out-of-court resolution “did not prove possible”, ESL said.

“We intend to work closely and collaboratively with other stakeholders to restructure the company’s balance sheet using the Chapter 11 framework as quickly and efficiently as possible and will continue to press forward with the goal of seeing Sears emerge from this process positioned for success as a smaller, less indebted retailer in an integrated retail environment,” ESL said.