JCPenney (USA) has struck a deal with creditors that will reduce the retailer’s debt load and leave it in a stronger financial position, according to a company statement.
- Lenders holding approximately 70% of JCPenney’s first lien debt agreed to a plan that would reduce the company’s outstanding indebtedness by several billion dollars and strengthen its financial position.
- This will provide JCPenney with increased financial flexibility to help navigate through the Coronavirus (COVID-19) pandemic, and better position it for the long-term.
- To implement the Plan, on May 15 the company filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code.
