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Fight Over ‘Predatory’ J.C. Penney Bankruptcy Loan Gets Ugly

  • One group of lenders accuses another of liquidation threats
  • Bankrupt retailer seeking approval of $900 million financing
JC Penney Store
Photographer: Martina Albertazzi/Bloomberg
Updated on

The fight over who gets to fund J.C. Penney Co.’s bankruptcy is heating up.

The U.S. retail giant filed for Chapter 11 protection last month with a $900 million financing package lined up from senior lenders including H/2 Capital Partners LLC and Silver Point Capital LP, according to a presentation at the time. Another set of lenders has lambasted the deal, calling the terms “predatory” in court documents and accusing the other group of strong-arming J.C. Penney.