J.C. Penney Company Inc. is negotiating bankruptcy financing with banks for a debtor-in-possession loan to secure liquidity for operations during bankruptcy, according to a report in the Wall Street Journal.
The publication indicated that an advanced stage of discussions is taking place with Wells Fargo & Co., Bank of America Corp. and JPMorgan Chase & Co. to secure funding in the range of $800 million to $1 billion, through a debtor-in-possession loan. Other lenders could participate in the syndicated loan, according to sources cited by The Wall Street Journal.
The retailer could file for bankruptcy as early as the next few weeks. It has already missed an interest payment to bondholders due April 15. J.C. Penney’s creditors may enter a forbearance agreement to allow additional time to negotiate with lenders before filing, reported WSJ.
Photo courtesy J.C. Penney