JC Penney Gets Nod To Postpone $34M In Rent Payments

Law360 (June 11, 2020) A Texas bankruptcy judge on Thursday granted J.C. Penney's request to delay $34 million in rent payments until mid-July, although for one day fewer than the retailer asked for after landlords expressed concern the company would run out of cash before they got paid. U.S. Bankruptcy Judge David Jones granted the retailer a delay in paying its June and July rent, but only until July 13, not July 14 as the company had initially requested, saying he was addressing the concerns of landlords who said they were worried a possible toggle from restructuring to liquidation on July 14 could mean administrative insolvency. The landlords argued that J.C. Penney had not demonstrated it needs the extension. Ivan Gold, counsel for two objecting shopping mall owners, said that by J.C. Penney's own account it has $559 million in cash available and sales that are exceeding projections, and that it has made payments to "critical vendors." "In the abstract, what more critical vendor is there than the landlord?" he said. Read More (subscription required)