Member access

4-Traders Homepage  >  Shares  >  Nyse  >  J.C. Penney Company, Inc.    JCP   US7081601061

SummaryQuotesChart AnalysisNewsCalendarCompanyFinancialsConsensusRevisions 

J.C. Penney Company, Inc. : Bondholders withdraw claim Penney was in default on bond terms

03/20/2013 | 04:21pm US/Eastern
Recommend:
0

(Reuters) - J.C. Penney Co Inc bondholders who last month claimed the retailer had breached a covenant of a bond indenture withdrew and rescinded their notice of default on March 18, the company said in a regulatory filing on Wednesday.

The bondholders' law firm, Brown Rudnick, in early February sent Penney a letter saying that the department store operator had breached a covenant by granting a lien on its inventory.

The letter said Brown Rudnick represented investors who hold more than half of the outstanding bonds due in 2037.

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 a lawsuit filed by Penney soon after.

In a lawsuit, Penney asked a Delaware judge to declare that it was not in a default of its bond agreements.

The withdrawal of the notice of default is a break for Penney at a time concerns are high the chain could face a cash crunch after it reported a 31.7 percent decline in same-store sales during the fourth quarter.

Brown Rudnick was not immediately available for comment.

Shares of J.C. Penney ended regular trading on Wednesday down 0.7 percent at $16.17. The stock has fallen more than 50 percent in the past year.

(Reporting by Phil Wahba in New York; Editing by Steve Orlofsky)

Recommend :
0
React to this article
Latest news on J.C. PENNEY COMPANY, INC.
6d agoDJGE Seeks to Raise $3.1 Billion in Synchrony Financial IPO -- 4th Update
6d ago STARBUCKS : SBUX) Prospects Positive Amid Efforts to Reinvent Brand Image
07/17 J C PENNEY : Jcpenney celebrates self-expression in new back-to-school campaign
07/16 J C PENNEY : Jcpenney celebrates self-expression in new back-to-school campaign
07/13 HSN : CEO Grossman declined offer to run JCPenney: WSJ
07/04 J C PENNEY : JC Penney closes $2.35 billion credit facility
07/02 J C PENNEY : JC Penney closes $2.35 billion credit facility
07/02 J C PENNEY : Zamansky LLC : Investigates J.C. Penney Corporation Over Its Employ..
07/01 JC Penney appeals Macy's, Martha Stewart ruling
07/01 J C PENNEY : Jcpenney sponsors blake shelton's "ten times crazier" tour
Advertisement
Chart
Duration : Period :
J.C. Penney Company, Inc. Technical Analysis Chart | JCP | US7081601061 | 4-Traders
Income Statement Evolution
J.C. Penney Company, Inc. : Income Statement Evolution
More Financials
Dynamic quotes  
ON
| OFF