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Is this the "dry powder" opportunity JJ was talking about?
Milestones they didn't adhere to..
The Debtors shall comply with the following milestones:
• Final Bid Deadline of no later than [October 5, 2020];
• Conduct an Auction (or declare the Credit Bid the Successful Bid)
no later than [October 9, 2020];
• Obtain approval of the Credit Bid no later than [October 12, 2020].
• Close the Credit Bid no later than [October 16, 2020].
UPDATE October 8th 2020
Yesterday, the Court held a hearing to consider the Debtors’ emergency motion for entry of a scheduling order establishing deadlines related to the Debtors’ expected proposed sale to Simon/Brookfield and subsequent chapter 11 plan. The motion was opposed by the First Lien Minority Group and the AHEC. While the Court questioned whether the proposed sale is the best outcome, the Court noted that the Simon/Brookfield sale was the only option on the table so far. Accordingly, the Court set the following schedule/deadlines:
October 16, 2020: Deadline for the Debtors’ to file a motion seeking approval of the sale (“Sale Motion”) and proposed plan and disclosure statement.
October 20, 2020: Status conference and hearing to consider conditional approval of the disclosure statement.
November 2, 2020: Hearing to consider the Sale Motion.
November 24-25, 2020: Reserved for confirmation hearing.
Significantly, during the hearing, the Debtors’ counsel confirmed the most important financial component of the proposed sale from shareholders’ point of view – the allocation of the purchase price. Under the expected terms of the sale supported by the Debtors, the DIP Lender Group will purchase substantially all of the Debtors’ assets for a credit bid of $1.0 billion. That credit bid will be allocated toward a $900 million repayment of the DIP Loan and a $100 million repayment of the pre-petition First Lien Debt. As Mr. Sussberg stated: “[The sale] doesn’t provide value to unsecured creditors; doesn’t provide value to equity interest holders.”
Additionally, the Debtors made clear that the only potential competing bid at this time, the potential bid form the First Lien Minority Group, was not expected to change this outcome. Mr. Sussberg stated that he wanted everyone to “completely understand” that the fight between the DIP Lender Group and the First Lien Minority Group related to “value allocated amongst First Lien Lenders. We are not talking about value allocated to anyone else.”
These unequivocal statements from the Debtors are significant and highlight the AHEC’s reasoning for opposing either outcome. As such, as Mr. Okin previewed for the Court, the AHEC Professionals are working to prepare a motion requesting that the Court vacate or modify the order approving the DIP Loan. Undoing or limiting the terms of the DIP Loan Order will significantly increase the Debtors’ options for reorganization – an outcome that the AHEC believes will be favorable for all parties in interest. Be aware, that while the AHEC believes that reorganization is a better path for these Debtors, the AHEC is not currently able to formally propose any particular plan to the creditors and interest holders of the Debtors because, under the Bankruptcy Code, the Debtors have the exclusive right to propose a plan of reorganization for the time being. We are, nevertheless, working to prepare a proposed restructuring transaction reorganizing the Debtors’ entire enterprise to be submitted to the Debtors.
Sincerely,
Niko Celentano
Chairman
JCP Ad Hoc Equity Committee
Sign up!
jcpshareholders.com
That is nice!
I hopped others had additional quotes...
Gonna have to listen to the recording again, a lot to unpack...
Yep, we finally had the discussion they should have had 2 months ago.. Multiple bids soon to come to light and AHEC approved...
All moves in the right direction..
When Dublin was speaking you could see all the lawyers demeanor changed, hard when you get challenged for the first time. Dublin knows Sussyberg and unwound his story pretty quickly...
Quote of the day from court "Debt didn't need to be paid for years" It's out in the open now...
$JCPNQ
Red October. I say do your worst.. I'm not leaving...
Rig for Red, 50ft depth @ 0 bubble
Then again fruit in Africa tested positive... I think the market will be fine.. lol
https://www.theguardian.com/global-development/2020/may/19/tanzanias-president-shrugs-off-covid-19-risk-after-sending-fruit-for-tests
Agreed.. Nice notes....Thanks for responding!
"Okin should have anticipated"
Yes, they prob. did then thought about it.... We are already $ XXX,XXX in the hole, this is in the best interest of all and we don't have time to get everyone's to sign off.
Bet they have exhausted funds long ago, getting us what we know today entered into the record...
Think all this will be pulled together and delivered to the court before all Final bids are due on Monday 10/5? or even by 10/9 when bid is selected?
While everyone else is working right now to finalize a deal... AHEC is back to step 1 when EC was formed. Name / address / shares.....
Grey,
I think he was addressing the concerns of Mr. Thompson and the fact that he was not getting responded to by either / Okin or AHEC members..
Even though they may not like a shareholder they need to accommodate and communicate with all the same.
I don't agree that feelings were driving the decision. IMO JJ created AHEC in part to keep these folks off the calls and going through council.. Which failed and might be why he said Okin should have anticipated this...
Appreciate you Bob, I am hopped up on coffee today...
But this isn't school it's a court. And if you were the teacher yesterday you would have given that Trading DB an F and moved on like the Judge should have...
IMO -
Yes he did.. 100% correct.
He also said,
there is no value for shareholders.
value was gone long ago.
I didn't believe that BS either..
He didn't want the work of having to read and sort them all, so he pushed it to Okin who currently isn't getting paid...
I did however believe him when he said, he cannot act on anything that is not in front of him... If they formalize EC and we get a vote... I will adhere to the EC and group communication... The judge has not done that.
It's fine to wait, I respect everyone's rights.
On this, I am not willing to wait and there are documented reasons to why I think I am right... I will follow up with EC response when we see it...
IMO~
Ok no offence.. But you 2 agreeing with me is freaking me out...
Doesn't change anything just freaky.
So your ok with waiting until the deal is over? To address valuation?
Unsecured Creditors got Jefferies yesterday.. Think they will wait until the 14th/deal is over to negotiate valuation?.
Why was Okin adamant that we get a hearing sooner than the 13th / 14th? Because they all know it's over by then.. because his only hope to help us is to have funding to negotiate valuation.
I could have created a google form in my sleep and sent it to all shareholders and delivered all of it to the court by COB today... It's not rocket science, but that is not the lawyers expertise...
Agree everyone should do what they feel is correct after reading and listening...
Every minute that goes by is another minute Okin is not funded, kind of like having public defender...
All IMO~
Judge can fix all of this anytime by signing the formal EC or we get proper funding and continue as is for now....
Nothing like giving limited budget and blaming them for not having resources to represent their client...
I have never written a letter (on this case) before last night, the court isn't just for DB's day traders or shareholders that have held for years... The judge didn't want that he shouldn't have let someone who didn't read the Stipulation to thwart all the shareholders...
Not to discount the appreciation of the formation... But that was in protection of himself as much as it was for us...
IMO~
Ever see the Matrix when the guy who wants to be reinserted sells out all his friends to do it... Crypto boy is the same... I will retract this if it happens but it won't.
Sent...
Strange how 1 guy was able to so quickly impact all shareholders.. At least in the short term..
Really think if enough shareholders agree and send we will hit critical mass and see signature...
Agree Mark! I believe a detailed plan was established during the arbitration, that now is being executed...
Those that sent objections to formal EC, agreed to give AHEC 750k more to ensure they track next steps and remain intact through the process...
Nothing in agreement that I see says they can't come back later and request formal EC again if things don't follow the plan...
IMO-
This was great news...
IMO - Something special is going on here.. I am no expert by any means but Have been in a couple complex BK's and this whole thing is bizarre. As many have said, I believe we will wake up one day with Money or shares in our account... Your either in when it happens or your not, but to get a peek at what comes next you need to be in....or pay a lot more for shares.
JJ comments alone point to that.
"No speculation"
"As we begin history"
Thanks to all that contribute, it is appreciated...
This letter talks about the private label credit card revenue and it's potential value..
This guy below from JCP that signed off on that 1 property sale the other day.. Look at what he states the value of the credit portfolio is.... Where is this value in the debtors financials? $$
Sale docket
https://cases.primeclerk.com/JCPenney/Home-DocketInfo
Linkedin profile
https://www.linkedin.com/in/windonchau/
"Divisional Vice President, Assistant Treasurer
Director of Credit and Payment Services, 2012 – Present
JCPenney Corporation
Appointed to this operational role to lead the company’s customer credit and payment function consisting of the private label credit card, third party credit cards, gift cards, check and cash. Stewardship of JCPenney’s $5 billion private label credit card program and the organization’s point-of-sale customer payment methods to meet current and new business requirements."
Think someone pissed at Sussberg?....
Andrew Leblanc, Milbank LLP for the ad hoc group of first lienholders
Philip Dublin, Akin Gump Strauss Hauer & Feld LLP for minority first lienholders
Different Judge is part of the normal process for settlement conference..
https://ljlawlv.com/what-is-a-settlement-conference-and-what-should-i-expect/
Agree!
Not to say MM's didn't take advantage of said release...
Which IMO was not good or bad but just a poorly timed clarification..
What's happening here is far beyond retail....
Hope someone can enlighten us... Interesting timing....I didn't realize it needed to be reconstituted / I think it might be a confirmation of additional value... but I don't really know...
IMO
NOTICE OF RECONSTITUTED COMMITTEE OF UNSECURED CREDITORS
Just filed by Trustee.
https://cases.primeclerk.com/JCPenney/Home-DownloadPDF?id1=MTU5MTg2NA==&id2=0
Per the docket 1165 has been moved to Sept 4.. I didn't see anything in docket for 1268, so expect that is still on for Friday...
The calendar cannot be trusted, often slow to update/ inaccurate...
Thanks to all for the DD discussed... Interesting developments last couple of days...
Going to cut ties, not cut ties...
It is 900 but 450 was existing debt rolled up... 450 new money and 450 consolidated old debt... Only have to pay back the new money to get out...
They buy it up to have more leverage while also cutting down on claims..
That's how I understood it anyway...
Just talking it through Bob...
Based on the Htz Ceo getting charged, if that happened here.. Could explain some things...
Could it be part of the Bonus structure and since the original deal appears to have fallen apart she had to return them?
Most seem sure that Jill had a nefarious plan.. Could it possibly be that DIP lenders are the ones with a nefarious plan to steal JCP? shorting the stock and pressuring the team to bend to their will?
If we remember that another better offer for DIP financing was passed over... Wouldn't a better deal = better for estate?
I agree something is off with how all this is going down... Just cannot say for sure...
Agreed nice work!
Agreed on all that..
So now I am thinking these are likely the deadbeat stores. So why go to the trouble to auction them?...A lot of work and Auction fee's to get low balled...
I have a store here in our town shutdown several years ago.. We are located in a central point to some larger cities.. 150 stores highly distributed.. Last Mile?
There is value there IF you have a buyer/buyers...I think the market test changed everything...
Will be interesting to see how these actions go...
IMO - GLTA!
So I haven't seen anyone taking a stab at how much they will bring in for these leases? I mean seriously do some math the numbers could be huge....I just don't know what a realistic number is to buy a lease that is 25% of the regular rate?
23years left on lease - 276 months
124 stores - 1 floor 20k-50k+ sqft (guessing on the range)
17 multi floor 100-200k
Avg cost psf 3.44 psf / per month
Fully weighted (fees,insurance, and deposits) 4.76 psf / per month
276 x 124 x 1.00 x 20000 = 684,480,000
276 x 17 x 1.00 x 100000 = 469,200,000
(not saying that is what they will get) but these are anchor stores.
Per the article below:
Exactly.. What is a persons motive?..
Kinda like bashing on a board everyday to save us when they don't own shares... No logical person does that without a motive.
No one knows the deal yet...Like punishing your kid before they do something wrong... Patience and timing is everything... If things go south, we all will have an opportunity to address the court before the final ruling.
JJ has seen it all in his time... Shareholders cannot be responsible for idiots.. Could he hold them in contempt? lol that would be funny....
Like the trading today... Just waiting on volume to come it... Time is on our side now...
IMO - Nothing can stop what is coming, likely decided long ago...
I'll bet it got advanced when the other 2 bidders showed up...
Hope that is on time, expect it to be.. Let bidders see revenue is continuing to grow and give them a bit more time to submit final bid....
We are close...
Totally agree Mark.. We need to know what we are contesting before using what little $$ they have.. They will have 1 shot to get it right, if they even need it...
BK is not instant gratification... I know longs understand...