JC Penney Headed For November Ch. 11 Plan Hearing

Law360 (October 7, 2020, 7:03 PM EDT) — A Texas bankruptcy judge on Wednesday set deadlines for J.C. Penney that would see the retailer submit its $1.75 billion asset sale plan and Chapter 11 plan to the court next week before heading for a possible pre-Thanksgiving confirmation fight.  

U.S. Bankruptcy Judge David Jones set the deadlines at a remote hearing that saw J.C. Penney argue that the case needed strict deadlines in order to finalize the sale and its Chapter 11 plan before the holiday shopping season, while a dissenting lender group argued more time was needed to see if a better offer could be found for the retailer’s…

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J.C. Penney Revs Up for Sale as Lender Faction Looks to Join Fray

J.C. Penney has now marked out a finish line to dash toward as it attempts to finalize a going-concern sale to landlords Simon Property Group and Brookfield Property and a majority group of first lien lenders. 

At a hearing Wednesday in Texas bankruptcy court, where the case began in mid-May, U.S. Bankruptcy Judge David Jones approved a timeline that puts the retailer on a path to a sale hearing on Nov. 2, and a Chapter 11 confirmation plan hearing on Nov. 24 and Nov. 25. The timeline would allow a first lien minority group, which has argued that the power dynamics in the case have undercut its interests, to craft its own bid to join the sale process. 

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At Wednesday’s hearing, Joshua Sussberg, a partner at Kirkland & Ellis LLP representing J.C. Penney, made the case for the urgency of the sale process at this point in

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