J.C. Penney has until September 10 to reach an agreement with lenders or face liquidation after talks with landlords for a rescue from bankruptcy proceedings stalled over the weekend, according to multiple news reports.
Reuters reports the negotiations reached an impasse in part over lease terms, citing people familiar with the matter. J.C. Penney’s lenders, which include hedge funds and private-equity firms financing its bankruptcy case, have agreed to explore forgiving debt in return for control of the company’s retail operations.
According to CNBC,the retailer's top lenders, including H/2 Capital Partners, are now set to make a credit bid to own the retailer as a stand-alone company, attorney Joshua Sussberg of Kirkland & Ellis.
Under financial pressure from the Coronavirus, J.C. Penney filed for Chapter 11 in May temporarily closing 850 stores.