Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Economy & Forex

News : Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

J.C. Penney rescue deal approved in bankruptcy court

11/10/2020 | 05:30am EST
California closes indoor shopping malls as it pulls back from opening due to a sharp rise in positive tests of the coronavirus disease (COVID-19), in Carlsbad

(Reuters) - A U.S. judge on Monday approved a deal to rescue J.C. Penney Co Inc from bankruptcy proceedings precipitated by the coronavirus pandemic, averting a liquidation that would have put the beleaguered department store chain out of business and jeopardized tens of thousands of jobs.

The U.S. Bankruptcy Court for the Southern District of Texas approved the deal, which will allow the 118-year-old retailer to emerge from bankruptcy before the upcoming holiday season, the company said in a statement. The rescue deal is expected to save approximately 60,000 jobs.

The transaction contains multiple parts. Lenders led by H/2 Capital Partners will forgive $1 billion in debt in exchange for 160 properties and six distribution centers. Mall operators Simon Property Group and Brookfield Property Partners will acquire the company's slimmed-down retail operations for $1.75 billion in cash and debt.

The sale approval comes a week after J.C. Penney's lawyers announced a settlement with nearly all of its creditor groups that locked in support for the sale and marked a turning point in a bankruptcy case that has been marked by inter-lender fighting. However, a group of equity holders - whose investments will be wiped out - remained opposed to the deal.

J.C. Penney filed for bankruptcy in May with nearly $5 billion in debt. The company was one of several retailers, including J. Crew Group Inc, Neiman Marcus Group and Brooks Brothers that sought Chapter 11 protection amid the coronavirus pandemic.

James Cash Penney launched the company in 1902, opening the first store in Wyoming. J.C. Penney went public in 1929 and over the next several decades became ubiquitous across the United States. The business began to stumble in recent years as online commerce took a toll on traditional brick-and-mortar retail.

(Reporting by Maria Chutchian; additional reporting by Kanishka Singh; Editing by Cynthia Osterman and Anil D'Silva)

By Maria Chutchian


© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
BROOKFIELD PROPERTY PARTNERS L.P. 1.39% 17.445 Delayed Quote.19.00%
SIMON PROPERTY GROUP, INC 2.87% 95.19 Delayed Quote.9.05%
Latest news "Economy & Forex"
02:02pEcuador president hopeful Arauz would scrap IMF economic program
RE
02:02pArauz would conduct a review of whether mining companies have complied with environment rules and investment plans
RE
02:02pArauz says he does not agree with terms of $3.5 bln financing deal with u.s. development bank dfc
RE
02:02pIf elected, arauz would finance government spending with funds borrowed from ecuador's central bank
RE
02:02pECUADOREAN LEFTIST PRESIDENTIAL CANDIDATE ARAUZ SAYS HE WILL NOT FOLLOW IMF ECONOMIC PROGRAM IF ELECTED - Interview
RE
01:59pU.S. consumer watchdog director resigns at request of Biden administration
RE
01:59pGerman COVID-19 fight hit by delay to Pfizer vaccine
RE
01:58pBank of England's Bailey expects 'pronounced recovery' for economy
RE
01:58pU.S. Inflation-Protected Bond Yields Hold Near Record Lows
DJ
01:57pCanadian dollar notches 3-year high as BoC foregoes 'micro rate cut'
RE
Latest news "Economy & Forex"