J.C. Penney lenders agree to extend business plan approval deadline

By Caroline Salls

Pittsburgh, Aug. 6 – J.C. Penney Co., Inc.’s debtor-in-possession financing lenders agreed to extend a DIP credit agreement milestone related to lender approval of the company’s business plan, according to an 8-K filed Thursday with the Securities and Exchange Commission.

Specifically, a toggle event will now occur under the credit agreement if the supermajority lenders fail to approve the business plan by Aug. 7, extended from July 31.

J.C. Penney said the business plan is expected to include the establishment of an operating company and a real estate investment trust.

The finalization of an acceptable asset purchase agreement, master lease agreement, distribution center lease agreement and term loan credit agreement with the winning bidder for the operating company must be completed by Aug. 30.

The apparel and home furnishings retailer is based in Plano, Tex. The company filed bankruptcy on May 15 in the U.S. Bankruptcy Court for the Southern District of Texas under Chapter 11 case number 20-20182.

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