J.C. Penney obtains 120-day extension of its exclusive plan periods

By Sarah Lizee

Olympia, Wash., Oct. 6 – J.C. Penney Co., Inc. obtained an extension of its exclusive periods to file and solicit votes on a Chapter 11 plan, according to an order filed Tuesday with the U.S. Bankruptcy Court for the Southern District of Texas.

The plan filing period was extended through Jan. 10 and the solicitation period through March 11.

“On the precipice of a going-concern transaction, it is critical that the debtors obtain their first extension of the exclusivity periods to allow for the consummation of a value-maximizing transaction,” the extension motion said.

The company said the informal group of first-lien notes secured parties and term loan credit parties and proposed stalking horse bidder Brookfield Property Group and Simon Property Group have reached an agreement in principle that “provides a clear and achievable blueprint to continue to operate J.C. Penney through a going-concern transaction that will save more than 70,000 jobs.”

J.C. Penney said the parties will work to finalize definitive documentation and complete the transaction through an asset purchase agreement and Chapter 11 plan over the coming weeks.

The apparel and home furnishings retailer is based in Plano, Tex. The company filed bankruptcy on May 15 under Chapter 11 case number 20-20182.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.