J.C. Penney Skips Payment As It Explores Strategic Alternatives

In a filing with the United States Securities and Exchange Commission, J.C. Penney stated that it has elected not to make a $12 million interest payment set for April 15.

The company maintained that it had elected to enter into the 30-day grace period with respect to the interest payment to evaluate strategic alternatives, none of which have been implemented at this time.

The payment was on 6.375% senior notes due in 2036. Under the indenture governing the 2036 senior notes, J.C. Penney has a 30-day grace period to make the interest payment before such non-payment constitutes an event of default with respect to the 2036 senior notes, it noted.