standard Jcpenney Restructuring Support Agreement

For more information on JCPenney`s financial restructuring, please visit www.jcprestructuring.com. Court documents and information relating to the claims procedure are available at cases.primeclerk.com/JCPenney, at the call of the company`s claims manager, Prime Clerk, at 877-720-6576 or by email at JCPenneyinfo@primeclerk.com. Soltau added: “Implementing this financial restructuring plan through a judicially supervised process is the best way to ensure that JCPenney builds on its more than 100-year history to serve our clients for decades to come. We believe that the RSA and the broad support we have received from our wealth lenders and our first pawnbrokers will allow us to continue a financial restructuring over a faster period of time. We are also encouraged by the support we have received from our supplier partners, owners and other stakeholders, whose trust in our company and employees must contribute to a successful reorganization. Kirkland – Ellis LLP is legal counsel, Lazard is a financial advisor and AlixPartners LLP is a restructuring advisor for the company. The implementation of the financial restructuring will enable JCPenney to accelerate its strategy of optimizing subsidiaries. As part of the ongoing transformation, JCPenney will reduce its storage space to better focus its activities on the current operating environment. Stores will be closed in phases throughout the Chapter 11 process – and the first phase of closures, including specific details and dates, will be announced in the coming weeks. As previously announced, JCPenney entered into a restructuring financing agreement with lenders that held approximately 90% of their first mortgage debt to reduce the company`s outstanding debt and strengthen its financial position. In order to implement the financial restructuring plan, the company submitted voluntary reorganization requests under Chapter 11 of the U.S. Bankruptcy Act. JCPenney will file a number of routine applications on the first day in the U.S.

Banking Court seeking authorization to support its operations during the financial restructuring process, including the power to pay unaccompanied wages, grant certain benefits to all employees, and pay selling partners in the normal course for all goods and services provided on the Chapter 11 filing date. For more information on JCPenney`s financial restructuring, please visit www.jcprestructuring.com. After the implementation of the APA, the agreement will be binding on Brookfield, Simon and First Link Lenders. JCPenney intends to apply for authorization from the Federal Banking Court of the U.S. Bankruptcy Court for the Southern District of Texas (the “Tribunal”) to hold an auction pursuant to Section 363 of the U.S. Banking Corruption Code. As a result, the application should present the proposed tendering procedures for the auction, with Brookfield, Simon and first Link Lenders serving as “Stalking Horse Bidder” in order to obtain the best or best bid for JCPenney`s stakeholders. “We found that an agreement with Brookfield and Simon, as well as the creation of separate real estate investment trusts owned by our First Lender Link, is the best way to maximize value for our stakeholders, ensure that we keep most branches open and employ staff, and position JCPenney on our more than 100-year history,” said Jill Soltau, JCPenney`s Chief Officer. “The interest in our business reflects the strength of our company and our loyal customers. It is proof of the hard work and commitment of our talented employees, and the progress we have made in implementing our renewal plan to deliver compelling products, promote traffic, provide an attractive experience, promote growth and build a results-oriented culture. “Until this pandemic, we had made considerable progress in rebuilding our business as part of our Plan for Renewal strategy – and our efforts had already paid off.