J.C. Penney Lenders Led by Aurelius Seek to Slow Property Sale

(Bloomberg) — A group of creditors to J.C. Penney Co. is seeking to slow the sale of the bankrupt retailer’s real estate to another group of lenders, saying that it provides the buyers an undeserved windfall and reeks “of not only greed but abhorrent bad faith.”



a group of people performing on a counter: Christmas decorations are displayed near the entrance to a J.C. Penney store inside the Westfield Mall in Culver City, California, U.S., on Friday, Nov. 16, 2018. Third-quarter reports from department stores gave investors reason to sell retail stocks. Some on Wall Street are starting to raise caution about the fourth quarter as well, particularly given the year-to-date strength of the group.


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Christmas decorations are displayed near the entrance to a J.C. Penney store inside the Westfield Mall in Culver City, California, U.S., on Friday, Nov. 16, 2018. Third-quarter reports from department stores gave investors reason to sell retail stocks. Some on Wall Street are starting to raise caution about the fourth quarter as well, particularly given the year-to-date strength of the group.

The objecting creditors, led by Aurelius Capital Management, say they submitted a $750 million competing bid for J.C. Penney’s properties that would provide $600 million more to the bankrupt estate and more evenly distribute proceeds among creditors. They’re asking Judge David

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J.C. Penney Rushes to Finalize Sale to Lender, Landlord Group

(Bloomberg) — J.C. Penney Co. has formalized a planned sale to its bankruptcy lenders and biggest landlords, but must first finalize a staggering lease agreement in less than a week to close the deal.



a large brick building with a sign in front of a house: A closed JC Penney Co. store stands in Mt. Juliet, Tennessee, U.S., on Thursday, April 16, 2020. J.C. Penney is skipping an interest payment, putting the struggling retailer on the path toward a potential default on its debt.


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A closed JC Penney Co. store stands in Mt. Juliet, Tennessee, U.S., on Thursday, April 16, 2020. J.C. Penney is skipping an interest payment, putting the struggling retailer on the path toward a potential default on its debt.

The retailer on Tuesday filed a draft purchase agreement detailing a plan to sell itself to mall owners Simon Property Group Inc., Brookfield Property Partners and its senior lenders. But the parties have until Monday to finalize a master lease agreement between the mall landlords and the lenders who will own most of the retailer’s real estate, Josh Sussberg of Kirkland & Ellis said in a court hearing on behalf of J.C. Penney.

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J.C. Penney asked to have the weekend to complete details of it bankruptcy exit and sale

J.C. Penney told the bankruptcy court Friday that it will miss its deadline to file documents that outline its reorganization and sale and it expects to make the disclosures on Monday.



a group of people standing in front of a store: Shoppers enter the former Collin Creek Mall J.C. Penney store in Plano. It permanently closed last weekend as part of Plano-based Penney's bankruptcy reorganization to close of 144 of its 846 stores. Two other stores, in Dallas and Lewisville, also closed last week. Penney still operates 15 stores in North Texas. The Collin Creek property is being redeveloped into a mixed-use project.


© Tom Fox/Staff Photographer/The Dallas Morning News/TNS
Shoppers enter the former Collin Creek Mall J.C. Penney store in Plano. It permanently closed last weekend as part of Plano-based Penney’s bankruptcy reorganization to close of 144 of its 846 stores. Two other stores, in Dallas and Lewisville, also closed last week. Penney still operates 15 stores in North Texas. The Collin Creek property is being redeveloped into a mixed-use project.

A hearing is scheduled for Tuesday and negotiations that have been underway for months are expected to be completed by then, according to the motion filed to extend the deadline to Monday.

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What’s still being hammered mounts to millions of dollars of payout to various first lien secured

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