Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nyse  >  J C Penney Company Inc    JCP

SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets 

J.C. Penney Company, Inc. : JC Penney sues to block bondholders from declaring default

share with twitter share with LinkedIn share with facebook
share via e-mail
0
02/05/2013 | 12:58am CEST

J.C. Penney Co Inc filed a lawsuit on Monday asking a Delaware judge to declare that it is not in a default of its bond agreements, protecting nearly $3 billion of debt from being due in the coming months.

The lawsuit was filed after J.C. Penney received a letter earlier on Monday from the Brown Rudnick law, firm which said the retailer had breached a covenant of a bond indenture agreement by granting a lien on its inventory, according to the complaint filed in the Delaware Court of Chancery.

The indenture agreement related to $326 million of outstanding bonds that mature in 2037, although the letter said that J.C. Penney could be in default on all of its $2.9 billion bond debt, according to the lawsuit.

The letter also said bondholders believed that J.C. Penney's debt could be declared payable in less than three months, according to the lawsuit.

The letter said Brown Rudnick represented investors who hold more than half of the outstanding bonds due in 2037, according the complaint, which seeks to be heard on an expedited basis.

"We believe this notice of default is invalid, completely without merit and is intended to create self-interested trading opportunities in the market, and we will therefore vigorously defend the interests of J.C. Penney and all of our constituencies," J.C. Penney Chief Financial Officer Ken Hannah said in a statement.

In the complaint, J.C. Penney noted that the demand from Brown Rudnick came as the company is investing significantly to update its stores.

J.C. Penney has been struggling with plunging sales for almost a year as Chief Executive Ron Johnson has tried to eliminate most discounts while also transforming each of its 700 largest stores into a collection of 100 shops for brands like Levi's and PVH Corp's Izod band.

Customers balked at the new pricing and the retailer has backtracked on some of its pricing policy.

The stock was down more than 50 percent in the past 12 months.

The case is JC Penney Company Inc v U.S. Bank National Association, Delaware Court of Chancery, No. 8276.

(Reporting By Tom Hals in Wilmington, Delaware; Editing by Tim Dobbyn and M.D. Golan)

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on J C PENNEY COMPANY INC
03:55p Dollarama's profit beat sends shares to record high
03:35p J C PENNEY : Business J.C. Penney at Westminster may be among stores to close
04:10a J C PENNEY : Whitehall police charge man with exposing himself at Target, J.C. P..
03/29 J C PENNEY : Tough to say goodbye
03/28 Malls look to grocery stores as a 'survival tactic'
03/25 J.C. Penney, Sears and Kmart Store Closings the Latest Casualty as Amazon Con..
03/25 Virginia Center Commons faces challenges under new ownership The new owner of..
03/24 J C PENNEY : Management's Discussion and Analysis of Financial Condition and Res..
03/23 J C PENNEY : shuttering stores, slashing jobs
03/23 J C PENNEY : Hershey hires Mary Beth West as chief growth officer, SVP
More news
Sector news : Department Stores - NEC
03:55p Dollarama's profit beat sends shares to record high
11:45aDJNEXT TARGET FOR STATES SEEKING TO CO : Sellers on Amazon
03/29DJAMAZON COM : to Shut Down Unprofitable Quidsi Division -- Update
03/29DJAMAZON COM : to Shut Down Unprofitable Quidsi Division
03/29 British business navigates rocky path to Brexit
More sector news : Department Stores - NEC
News from SeekingAlpha
03:47a Embrace The Panic, Some Retail Stocks Are Good Buys
03/29 Apparel stocks get their day in the sun
03/28 Deep Discounters Are Thriving
03/27 Where Are The Investors' Yachts?
03/27 Don't Let The Lethargic Numbers Fool You - The J.C. Penney Turnaround Is Brew..
Advertisement
Financials ($)
Sales 2018 12 342 M
EBIT 2018 494 M
Net income 2018 151 M
Debt 2018 3 444 M
Yield 2018 -
P/E ratio 2018 12,83
P/E ratio 2019 11,03
EV / Sales 2018 0,43x
EV / Sales 2019 0,40x
Capitalization 1 883 M
More Financials
Chart J C PENNEY COMPANY INC
Duration : Period :
J C Penney Company Inc Technical Analysis Chart | JCP | US7081601061 | 4-Traders
Full-screen chart
Technical analysis trends J C PENNEY COMPAN...
Short TermMid-TermLong Term
TrendsBearishBearishBearish
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 24
Average target price 8,86 $
Spread / Average Target 45%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Marvin R. Ellison Chairman, President & Chief Executive Officer
Edward J. Record Chief Financial Officer & Executive Vice President
Therace Risch Chief Information Officer & Executive VP
Robert Gerald Turner Independent Director
Leonard H. Roberts Independent Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
J C PENNEY COMPANY INC-26.59%1 883
WESFARMERS LTD5.32%38 864
KERING12.21%32 508
AEON CO LTD0.72%13 084
EL PUERTO DE LIVERPOOL..0.52%11 562
LOTTE SHOPPING CO LTD--.--%6 130
More Results