This is all over the news now and should be on CNBC tomorrow morning 6/10/2020 and if it is, this zooms to much higher levels. NOTICE how they actually downplayed an Equity Committee? Most will understand what this means!
Shareholders of Bankrupt J.C. Penney Get a $250,000 Lifeline
Bloomberg•2 hours ago
Shareholders of Bankrupt J.C. Penney Get a $250,000 Lifeline
(Bloomberg) -- J.C. Penney Co. shareholders got a helping hand Tuesday from U.S. Bankruptcy Judge David Jones.Jones will order the retailer to pay as much as $250,000 in professional fees to support an informal group of shareholders who have been challenging the bankruptcy, he said in a hearing Tuesday. In exchange, the group of retail investors agreed to nix its attempt to have the whole case thrown out along with its request for status as an official group, which could’ve resulted in huge legal bills for J.C. Penney.
Shareholders typically get no recovery in a Chapter 11 bankruptcy, but the legal fights that result from pugnacious stockholders can slow down a case and hurt recoveries for creditors. Jones said he views the compromise as a way to help educate shareholders on where the case is headed and how bankruptcy works.“I’m looking at this as a very reasonable expenditure to further education and promote discussion,” Jones said. “It’s not a war chest.”The news comes on the heels of a head-scratching surge in the stock prices of J.C. Penney and other bankrupt companies. Some of the retailer’s debt, which ranks well above shares in the repayment line, was valued at just 0.125 cents on the dollar in a credit-default swap auction Tuesday, implying extremely slim odds of any payout to equity investors.
Still, J.C. Penney shareholders have been active participants in its bankruptcy proceedings to date. Several have asked questions during hearings, including cross-examining witnesses and pleading with Jones to prevent a wipeout of the stock. In court papers, the informal stockholder group decried recent bonus payments to executives and insisted that bankruptcy could’ve been avoided.“If there is any possible way -- any way -- to give a meaningful recovery to shareholders, we will fight for it,” Joshua Sussberg of Kirkland & Ellis, J.C. Penney’s bankruptcy lawyer, said in the hearing. But he added that not filing for bankruptcy “would have left the company on a desolate island without a chance for survival.”The case is J.C. Penney Company Inc., 20-20182, U.S. Bankruptcy Court for the Southern District of Texas (Corpus Christi)(Adds final CDS auction result in fifth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Syracuse Is Said To Be In Talks To Buy Bankrupt J.C. Penney; Shares Leap 55%
SmarterAnalyst
2 Top Mall REITs Might Buy J.C. Penney Out of Bankruptcy
Simon Property Group and Brookfield Property REIT are reportedly interested in buying the bankrupt department store chain to prevent the disappearance of a key anchor tenant.
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