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Bloomberg
JC Penney Co is preparing for talks with its creditors on possible transactions to ease its debt burden and give the company’s new chief executive more breathing room ahead of the critical holiday season.
Advisers for the department-store chain and some of its bondholders are close to signing non-disclosure agreements, and expect to do so by the end of September, according to people with knowledge of the matter. Those agreements would allow advisers for groups of first-lien, second-lien and unsecured bondholders access to confidential company information, the people said, who asked not to be identified discussing private negotiations.
“As a matter of policy, we do not comment on discussions with creditors and other partners,†Sarah Holland, a representative for Plano, Texas-based JC Penney, said.
Bondholders for the 117-year-old retailer have been pushing for the company to consider a swap or extension on some of its $4 billion of debt ahead of the maturities, in an effort to avoid the last-minute brinkmanship that contributed to the bankruptcies of Toys ‘R’ Us Inc, Sears Holdings Corp and Barneys New York Inc. A bankruptcy filing isn’t currently a focus of the anticipated debt talks, the people said.
CEO Jill Soltau has been under pressure to turn around the struggling retailer since assuming her position last year.
Soltau has shuttered stores, exited the major appliance business, and is focussing on improving the consumer in-store and online retail experience.