JCPenney Restructuring Plan to Create PropCos Confirmed by Court

J. C. Penney Company, Inc. (OTCMKTS: JCPNQ) today announced that the U.S. Bankruptcy Court for the Southern District of Texas (the “Court”) has confirmed the Company’s Plan of Reorganization (the “Plan”) to create separate property holding companies (“PropCos”) comprising 160 of the Company’s real estate assets and all of its owned distribution centers, which will be owned and operated by JCPenney’s DIP and First Lien Lenders. The PropCos are expected to complete the Court-supervised restructuring process and emerge from Chapter 11 bankruptcy protection in the first half of 2021.

The Plan is pursuant to the Company’s asset purchase agreement (“APA”) with Simon Property Group (“Simon”) and Brookfield Asset Management, Inc. (“Brookfield”) and the Company’s DIP and First Lien Lenders, supported by the Unsecured Creditors Committee. The APA also provides that Simon and Brookfield are acquiring JCPenney’s retail and operating assets (“OpCo”). The PropCos and OpCo will enter into master leases with respect to the properties and distribution centers moved into the PropCos.
https://www.jcpnewsroom.com/news-releases/2020/1125_propco_approval.html

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