Bankrupted JC Penney plans to spin its properties into separate real estate company
An empty parking lot is shown at a closed JC Penney store in Roseville, Mich., May 8, 2020.
Paul Sancya | AP
A piece of J.C. Penney‘s proposal to emerge from bankruptcy includes spinning its real estate into a publicly traded real estate investment trust.
As part of a plan filed with the bankruptcy court, Penney would reorganize into a new retailer (“JCP”), along with a REIT that would collect rent checks from the retail business. Court documents say as much as a 35% stake in the newly created REIT could be sold to a third-party investor to raise cash, or to provide additional funding for the REIT.
Weighed down by a heavy debt load of more than $4 billion and hit hard by the coronavirus pandemic, Penney filed for Chapter 11 bankruptcy protection Friday evening. Some are now questioning if the …continued .
[Source: CNBC News]