J.C.Penney submitted its business plan to lenders but is asking the Texas bankruptcy court for more time to continue negotiations with lenders on a restructuring plan.
Lenders are required to decide by July 15 whether the 118-year-old retailer will move forward as a restructured company. If not, the company’s assets will be sold off and the current operation will go out of business, according to the Dallas Morning News.
“We’re going to need more time. Our conversations have been incredibly productive,” J.C.Penney attorney Joshua Sussberg of Kirkland & Ellis said at a court hearing. “We believe we will come to an agreement and solution and avoid the outcome no one wants.”
Bankers and advisers are in the process of splitting up the real estate as part of the stated plan for J.C.Penney to emerge as two entities: a real estate investment trust owning some of the real estate and a successor Penney operating company, according to the report.
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