- Prachi Singh |
J. C. Penney Company, Inc. has entered into an asset purchase agreement (APA) with Brookfield Asset Management, Inc, Simon Property Group and a majority of the company’s DIP and First Lien Lenders. The company said in a statement that Brookfield and Simon will acquire substantially all of JCPenney’s retail and operating assets through a combination of cash and new term loan debt.
“Signing a definitive APA with Brookfield, Simon and our Majority First Lien Lenders allows us to move forward towards the completion of our financial restructuring – and we are looking forward to operating under new ownership outside Chapter 11 in advance of the 2020 holiday season,” said Jill Soltau, Chief Executive Officer of JCPenney.
The company added that the formation of separate property holding companies (PropCos), comprising 160 of the company’s real estate assets and all of its owned distribution centers, which will be owned by the company’s DIP and First Lien Lenders.