JCPenney Receives Court Approval for Asset Purchase Agreement with Brookfield, Simon and First Lien Lenders

On Track to Begin Operating Under New Ownership and Outside of Chapter 11 by Late November 2020

J. C. Penney Company, Inc. (OTCMKTS: JCPNQ) today announced that the U.S. Bankruptcy Court for the Southern District of Texas (the “Court”) has approved the previously announced asset purchase agreement (“APA”) with Brookfield Asset Management, Inc. (“Brookfield”), Simon Property Group (“Simon”) and the Company’s DIP and First Lien Lenders (“First Lien Lenders”), which is supported by the Unsecured Creditors Committee. Pursuant to the APA, Brookfield and Simon will acquire substantially all of JCPenney’s retail and operating assets (“OpCo”) through a combination of cash and new term loan debt.

“Our goal from the beginning of this process has been to ensure JCPenney will continue to serve customers for decades to come and this Court approval accomplishes that objective,” said Jill Soltau, chief executive officer of JCPenney. “With the 2020 holiday season in full swing, we are excited to operate under the new ownership of Brookfield and Simon outside of Chapter 11 and under the JCPenney banner. We appreciate the efforts of the Court and the support of our creditors in this process and putting us in a strong position to build on JCPenney’s long track record of taking care of our associates, customers, vendor partners and communities.”

Ms. Soltau continued, “I also want to give tremendous credit to our associates, whose hard work and persistent dedication to serving our customers are important reasons JCPenney has reached this significant milestone. As we work to close the OpCo transaction, we remain focused on implementing our Plan for Renewal to Offer Compelling Merchandise, Drive Traffic, Deliver an Engaging Experience, Fuel Growth and Build a Results-Minded Culture.”

The OpCo transaction remains subject to additional closing conditions and is expected to close in late November 2020.

Additional Information

Additional information regarding JCPenney’s financial restructuring is available at jcprestructuring.com. Court filings and information about the claims process are available at cases.primeclerk.com/JCPenney, by calling the Company’s claims agent, Prime Clerk, toll-free at 877-720-6576, or by sending an email to JCPenneyinfo@primeclerk.com.

Advisers

Kirkland & Ellis LLP is serving as legal adviser, Lazard is serving as financial adviser, and AlixPartners LLP is serving as restructuring adviser to the Company.

Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as legal counsel to Brookfield and Simon.

Contacts

Media Relations:
Kristen Bennett
(972) 431-3400 or jcpnews@jcp.com

Meaghan Repko / Jed Repko / Dan Moore
Joele Frank Wilkinson Brimmer Katcher
(212) 355-4449

Investor Relations:
(972) 431-5500 or jcpinvestorrelations@jcp.com