J. C. Penney Restructuring Plan Includes REIT

Retailer J. C. Penney, which filed for bankruptcy on Friday, is creating a real estate investment trust to spin off its real estate assets to pay off debt.

“By entering this restructuring support agreement with our lenders, we expect to reduce several billion dollars of indebtedness, provide increased financial flexibility to help navigate through the Coronavirus (COVID-19) pandemic, and better position JCPenney for the long-term,” said Jill Soltau, chief executive officer of the company.

To get the REIT going, the retailer will need court approval, but Penney would like the public traded spin off to start as soon as possible to generate cash.

Read more at Bloomberg.