J.C. Penney Co. Inc. is in advanced talks for bankruptcy funding with a group of lenders, a sign the troubled retailer is about to succumb to the economic collapse caused by the coronavirus pandemic, the Wall Street Journal reported. Penney is in discussions with existing lenders including Wells Fargo & Co., Bank of America Corp. and JPMorgan Chase & Co. for a debtor-in-possession loan that would keep the department-store chain’s operations funded during a court-supervised bankruptcy. The loan package could total roughly $800 million to $1 billion, with some of that money potentially including existing debt. The facility would likely be syndicated so that other lenders could participate. A bankruptcy filing could take place within the next few weeks. The company entered into a 30-day grace period after missing an interest payment due to bondholders on April 15. It is possible creditors enter into a forbearance agreement if the company needs additional time to iron out negotiations before filing.
