JCPenney Retail and Operating Assets Exiting Chapter 11
December 07 2020 - 10:27AM
Dow Jones News
By Michael Dabaie
JCPenney said its retail and operating assets are exiting
chapter 11 protection.
The company said it completed its previously announced sale,
under which Simon Property Group and Brookfield Asset Management
Inc. acquired substantially all of JCPenney's retail and operating
assets.
The company said its agreement with Simon, Brookfield and
JCPenney's debtor-in-possession and first lien lenders was
previously approved by the U.S. Bankruptcy Court for the Southern
District of Texas in November.
"With this closing, our operating company has exited Chapter 11
and is continuing under new ownership and the JCPenney banner,"
Chief Executive Jill Soltau said.
In addition, on Nov. 24 the court approved the company's plan to
create separate property holding companies comprising 160 of its
real estate assets and all of its owned distribution centers, which
will be owned by the company's DIP and first lien lenders. The
property companies are expected to complete the court-supervised
restructuring process and emerge from chapter 11 bankruptcy
protection in the first half of 2021, JCPenney said.
With the completion of the sale, JCPenney said it has access to
about $1.5 billion of new financing.
The retailer in May filed for bankruptcy protection.
Write to Michael Dabaie at michael.dabaie@wsj.com
(END) Dow Jones Newswires
December 07, 2020 10:12 ET (15:12 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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