JC Penney Company recently announced it has filed a draft asset purchase agreement (APA), which tracks the terms of the previously announced letter of intent, to sell itself. All parties are working to conclude negotiations and intend to utilise the ongoing mediation process to help achieve that goal, the US department store chain said in a statement.
According to the key terms of the draft APA Brookfield Asset Management and Simon Property Group will acquire substantially all of JCPenney’s retail and operating assets through a combination of cash and new term loan debt.JC Penney Company recently announced it has filed a draft asset purchase agreement (APA), which tracks the terms of the previously announced letter of intent, to sell itself. All parties are working to conclude negotiations and intend to utilise the ongoing mediation process to help achieve that goal, the US department store chain said in a statement. #
The formation of separate property holding companies, comprising 160 of the company’s real estate assets and all of its owned distribution centres, which will be owned by the company’s debtor-in-possession and first lien lenders.
“This is another important milestone in our restructuring plan, bringing us one step closer to finalising the APA, closing the sale process and exiting Chapter 11 ahead of the December 2020 holiday season,” said Jill Soltau, chief executive officer of JCPenney.
JCPenney entered into a restructuring support agreement with lenders of its first lien debt to reduce its outstanding indebtedness and strengthen its financial position. To implement the financial restructuring plan, it filed voluntary petitions for reorganisation under Chapter 11 of the US Bankruptcy Code.
Fibre2Fashion News Desk (DS)
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