After weeks of wrangling and a dearth of bidders, bankrupt JCPenney has finally found a buyer—mall operators Brookfield Property Group and Simon Property Group—and will avoid liquidation.
The department store chain said that based on a letter of intent, it plans to ink a stalking horse asset purchase agreement to sell its retail and operating assets via a court-supervised process to the two real estate groups for $1.75 billion in cash and debt.
Meanwhile, the company’s real estate assets, including distribution centers, will be placed in a separate real estate investment trust and property holding company that will be owned by the company’s first-lien lenders.
The plan is for JCPenney to enter into a master lease for the real estate assets with the lender-controlled property holding companies.
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