Mall owners Simon, Brookfield set to rescue JC Penney from bankruptcy in $800 million deal
U.S. mall owners Simon Property Group and Brookfield Property Partners are close to finalizing an $800 million deal to rescue the embattled department store chain J.C. Penney from bankruptcy, avoiding a total liquidation and saving about 70,000 jobs and 650 stores, Joshua Sussberg of the law firm Kirkland & Ellis said Wednesday.

Simon and Brookfield will pay roughly $300 million in cash and assume $500 million in debt, Sussberg said during a court hearing.

Key Points

  •     U.S. mall owners Simon and Brookfield are close to finalizing an $800 million deal to rescue J.C. Penney from bankruptcy.

  •     The deal would avoid a total liquidation and save about 70,000 jobs and 650 stores, Joshua Sussberg of the law firm Kirkland & Ellis said Wednesday afternoon during a court hearing.
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RSK: One might ask why Simon would dot this for a losing revenue Company? The answer is in the last paragraph and it is called Mall Co-tenancy clauses.



- - Volume: 8 - WEEK: 38 Date: 9/15/2020 8:40:18 AM -