J.C. Penney Rescue Deal Takes Another Step Forward
When J.C. Penney (OTC: JCPN.Q) filed for bankruptcy back in May, lawyers for the company acknowledged that quickly moving through the Chapter 11 process was essential. The company agreed to a July 15 deadline to negotiate a business plan with creditors, with the goal of emerging from bankruptcy before the critical holiday season.
J.C. Penney eventually struck a deal to sell its retail operations to a joint venture of retail REITs Simon Property Group (NYSE: SPG) and Brookfield Property Partners (NASDAQ: BPY). However, the process has dragged on longer than expected. Fortunately, J.C. Penney has finally filed a draft of the asset purchase agreement, providing a glimmer of hope that the sale to Simon and Brookfield can be finalized before Black Friday.
Following a competitive bidding process over the summer with three major contenders, J.C. Penney identified the Simon/Brookfield joint venture as the top bidder in August. Yet near the end of that month, talks between the parties broke down, forcing the ailing retailer to consider selling itself to its lenders instead.
Source Fool.com
