properties

Bankrupted JC Penney plans to spin properties into new real estate company

An vacant parking large amount is proven at a closed JC Penney retail store in Roseville, Mich., May perhaps eight, 2020.

Paul Sancya | AP

A piece of J.C. Penney’s proposal to arise from individual bankruptcy includes spinning its actual estate into a publicly traded actual estate expense trust. 

As portion of a approach submitted with the individual bankruptcy courtroom, Penney would reorganize into a new retailer (“JCP”), alongside with a REIT that would acquire hire checks from the retail small business. Court documents say as a lot as a 35% stake in the recently created REIT could be marketed to a 3rd-get together investor to raise cash, or to supply further funding for the REIT. 

Weighed down by a heavy debt load of much more than $4 billion and hit really hard by the coronavirus pandemic, Penney submitted for Chapter 11 individual bankruptcy safety Friday night. Some are now

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