J.C. Penney Corporation will exit bankruptcy
October 22, 2020
J.C. Penney Corporation could emerge from the bankruptcy process before the Christmas holidays, according to its CEO's statement on October 21.
The company reached an agreement with Brookfield and Simon that will purchase all of its retail and operating assets for $800 mln, more specifically for $300 mln in cash and $500 mln in the new term credit facility. At the same time, a group of first lien lenders is going to obtain 160 of the company's real estate assets and distribution centers to be a part of an independent real estate holding firm through the reorganization plan that will be finished after the end of the transaction.
After the agreement is completed, J.C. Penney’s operating assets will function under its sign as a subsidiary of Simon and Brookfield.
The company first stated that it intends to finish the deal in September when the lawyer of Kirkland & Ellis Joshua Sussberg announced that it would maintain around 70 000 jobs and 650 stores.
Company — J.C. Penney Corporation
Full nameJ.C. Penney Corporation, Inc.
IndustryTrade and retail