JCPenney sale moves forward, exit from Chapter 11 expected before December

Posted at 9:28 AM, Oct 22, 2020
and last updated 2020-10-22 12:28:03-04

The sale of J.C. Penney Co. Inc. is getting closer to the finish line, the company announced Tuesday.

JCPenney has filed a draft asset purchase agreement (APA), which tracks the terms of its previously announced letter of intent to sell the company to mall operators Simon Property Group and Brookfield Property Partners. Key terms of the APA include the following:

  • Simon and Brookfield will acquire substantially all of JCPenney’s retail and operating assets (OpCo) through a combination of cash and new term loan debt.
  • The formation of separate property holding companies (PropCos) comprised of 160 stores and all six of JCPenney's owned distribution centers, which will be owned by the company’s debtor-in-possession and first lien lenders.

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