Creditors of J.C. Penney reportedly are looking to meet with officials at the department store chain to discuss a debt swap that could give the retailer additional time to fix the company’s fiscal issues.
A report by Bloomberg said J.C. Penney’s bondholders are seeking to rework a portion of the company’s $4 billion of debt. A deal could include swapping second-lien notes into higher-priority debt, the report said, citing unidentified sources.
The Bloomberg report is the second such report in recent weeks regarding J.C. Penney and possible discussions about debt restructuring options. In mid-July, Reuters reported that the company had hired advisors to examine restructuring options for its approximately $4 billion in debt.
In response, J.C. Penney issued a statement saying, in part, that as a public company, it routinely hires external advisors to evaluate opportunities for the company.
“By working with some of the best firms in the industry, we are taking positive and proactive measures, as we have done in the past, to improve our capital structure and the long-term health of our balance sheet,” the company said. “We have no significant debt maturities coming due in the near term, and we continue to maintain a strong liquidity position. Also, given our strong liquidity position, we can confirm that we have not hired any advisors to prepare for an in-court restructuring or bankruptcy.”