Cash-strapped J.C. Penney Co. drew $850 million from a credit line to help fund its day-to-day operations, buying time for new chief executive Myron "Mike" Ullman to reverse sagging sales at the department store operator while it looks for ways to raise additional capital, the Wall Street Journal reported today. J.C. Penney yesterday said it drew down nearly half of a $1.85 billion revolving credit facility provided by its banks. The borrowed money, which is secured by inventory, credit card receivables and other assets, will be used to pay for inventory and other costs as the chain renovates its home departments. In February Penney got banks to increase the size of its credit facility, which matures in April 2016.
