Good News for Mall Owners: J.C. Penney Rescue Deal Nears Completion

For the past few months, bankrupt department store chain J.C. Penney (OTC: JCPN.Q) has been in a race against the clock to sell itself before the holiday season. Management and lawyers for the company fear that an extended stay in bankruptcy could cause lenders to lose patience and demand a liquidation: a fate that has befallen several other prominent retailers in recent years.

However, J.C. Penney now appears to have cleared the last major hurdle preventing a sale of its retail operations to Simon Property Group (NYSE: SPG) and Brookfield Property Partners (NASDAQ: BPY). That's a welcome piece of good news for Simon, Brookfield, and other mall owners.

About two weeks ago, J.C. Penney finally filed a draft asset purchase agreement (APA) governing the terms of its sale. That key agreement had been delayed by about a month as the company struggled to settle on key terms with Simon and Brookfield.

Source Fool.com