Old Copper Co. Inc. (f/k/a CPPRQ/JCPNQ JC Penney)

[Tigeroo7]

Today there was a Status Hearing regarding a motion filed by the Ad Hoc Committee for an Official Equity Committee in this case. At the start of the hearing Joshua Sussberg from Kirkland & Ellis (Debtors counsel) gave the court an update regarding the sale process that has been ongoing. Despite on numerous occasions of claiming to be close to announcing a deal had been agreed upon, he announced that negotiations had come to a stalemate. JC Penney and it's lender group had been negotiating with 3 parties of interest that had placed bids on the OpCo portion of the business during a Market Test. Mr. Sussberg stated "Our lenders are no longer going to be held hostage in negotiations with third parties". He also left open that chance that one of these interested parties may come back into the transaction.

Mr. Sussberg then went on to tell the court that the companies top lenders plan to make a credit bid themselves to own the company as a stand alone company. They have placed a September 10th deadline on negotiations with the lenders on this credit bid. He also announced that some stores that were kept open due to negotiations would now be closing. We will evaluate this transaction if/when it ever takes place.

This lender group has been in the drivers seat from the beginning of this bankruptcy. Because of the predatory terms of the DIP loan the lenders have had control over all decisions regarding this case.

On the Ad Hoc Equity Committee's motion for an Official Equity Committee the debtors counsel made mention that a hearing would slow down the process and was not necessary. They also made mention in a motion filed with the courts that the valuations provided by the Committee's professionals were 'far fetched". They finally questioned what the scope was of the Ad Hoc Equity Committee in the first place.

Matthew Okin from Okin/Adams (Counsel for the AHEC) spoke of what the Committee's scope has been since Day 1, and that was whether or not we believe there could be a return for equity in this case. Mr. Okin went on to say that the Committee's professionals "after going through all the data and financials of the company believe we have a case for equity and this is why we filed our motion".

Judge Jones ruled in favor of the Committee and set date for a hearing on September 30th where we will present our case to the courts for an order to appoint an Official Committee of Equity Interests. We will continue to monitor developments in the case while we prepare our case for court.

Sincerely,