JCP seeks @ $1B DIP in Bankrupt likely next wk best Bk plays are those that have DIP coverage if can get for pennies like $0.15 and flip like done in Sears Bk initially
J.C. Penney seeking around $1 billion in bankruptcy funding: report Today 9:08 PM ET (MarketWatch)
J.C. Penney Co. Inc. (JCP) is in advanced talks for bankruptcy funding, and is seeking a loan package of $800 million to $1 billion, the Wall Street Journal reported (https://www.wsj.com/articles/j-c-penney-in-advanced-talks-for-bankruptcy-financing-11587688846?mod=hp_lead_pos4) Thursday night. The Journal reported that the troubled retailer is in talks with existing lenders including Wells Fargo & Co., Bank of America Corp. and JPMorgan Chase & Co. for a debtor-in-possession loan that would keep the company's operations running during the bankruptcy process. A bankruptcy filing could come in the following weeks, the report said. Retailers, especially department stores, have been hard-hit by the coronavirus-related shutdown. Last week, Cowen analysts estimated that J.C. Penney had about seven months of operating cash left (http://www.marketwatch.com/story/nordstrom-can-withstand-12-months-of-store-closures-but-other-department-stores-have-much-less-time-analysts-say-2020-04-13). Penney's stock has tumbled 75% year to date, compared to the S&P 500's 13% decline.
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