JC Penney said Brookfield and Simon will acquire substantially all of its retail and operating assets through a combination of cash and new term loan debt, and that it expects to operate outside Chapter 11 before the holiday season. “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, CEO, JCPenney.

JC Penney entered into a restructuring support agreement with lenders of its first lien debt to reduce the outstanding indebtedness and strengthen its financial position. To implement the financial restructuring plan, the Company filed voluntary petitions for reorganisation under Chapter 11 of the U.S. Bankruptcy Code.