The separate property holding companies comprising 160 of J.C. Penney’s real estate assets and all of its owned distribution centres are to be owned and operated by JCPenney’s DIP and First Lien Lenders. The separate companies are expected to complete the Court-supervised restructuring process and emerge from Chapter 11 bankruptcy protection in the first half of 2021.

The Plan is pursuant to the Company’s asset purchase agreement with Simon Property Group and Brookfield Asset Management, and the Company’s DIP and First Lien Lenders, supported by the Unsecured Creditors Committee. The purchase agreement also provides that Simon and Brookfield are acquiring JCPenney’s retail and operating assets.