Aurelius Group Slams J.C. Penney Sale, Prepares a Rival Bid
- Dissenting creditors say current bid grossly undervalues chain
- J.C. Penney says speedy completion is essential to survival
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A group of J.C. Penney Co. debt holders including Mark Brodsky’s Aurelius Capital Management said it’s preparing a cash bid for the bankrupt retailer, saying that an existing offer “appears to grossly undervalue” the department store chain.
In court papers filed Monday, the group -- which holds some $162 million of J.C. Penney term loans -- attacked the earlier bid from lenders led by H/2 Capital Partners as overly generous to the H/2 group at the expense of other creditors. Aurelius is known as one of the most aggressive and sometimes combative investors in distressed companies.