JCPenney gets court approval for asset purchase agreement with Brookfield, Simon

JCPenney gets court approval for asset purchase agreement

JCPenney announced that the U.S. Bankruptcy Court for the Southern District of Texas has approved the asset purchase agreement with Brookfield Asset Management, Simon Property Group and the Company’s DIP and First Lien Lenders.

Brookfield and Simon will acquire substantially all of JCPenney’s retail and operating assets through a combination of cash and new term loan debt, said the company said in a statement.

READ ALSO : JCPenney files draft asset purchase agreement

“Our goal from the beginning of this process has been to ensure JCPenney will continue to serve customers for decades to come and this Court approval accomplishes that objective,” said Jill Soltau, chief executive officer of JCPenney. “With the 2020 holiday season in full swing, we are excited to operate under the new ownership of Brookfield and Simon outside of Chapter 11 and under the JCPenney banner. We appreciate the efforts of the Court and the support of our creditors in this process and putting us in a strong position to build on JCPenney’s long track record of taking care of our associates, customers, vendor partners and communities.”

Ms. Soltau continued, “I also want to give tremendous credit to our associates, whose hard work and persistent dedication to serving our customers are important reasons JCPenney has reached this significant milestone. As we work to close the OpCo transaction, we remain focused on implementing our Plan for Renewal to Offer Compelling Merchandise, Drive Traffic, Deliver an Engaging Experience, Fuel Growth and Build a Results-Minded Culture.”

The OpCo transaction remains subject to additional closing conditions and is expected to close in late November 2020.