NORTH ATTLEBORO — The sale of troubled retailer J.C. Penney appears to have hit another snag.
A group of creditors of the bankrupt chain is seeking to slow the sale of its real estate to another group of lenders, saying that it provides the buyers an undeserved windfall, bloomberg.com reported Monday.
The objecting creditors have submitted a $750 million competing bid for J.C. Penney’s properties that would provide $600 million more to the bankrupt estate and more evenly distribute proceeds among creditors, bloomberg.com reported.
They’re asking Judge David Jones of the U.S. Bankruptcy Court in Texas to order a separate process for the property sale to the so-called DIP lender group, while proceeding with the sale of the retailer’s operations to its two biggest landlords. One of them is Simon Property Group, owner of Emerald Square mall, of which Penney was one of the original anchors.
J.C. Penney has said the deal will save more than 60,000 jobs and wants to complete it before the holiday shopping season.
Under that agreement, J.C. Penney’s assets would be bought by a group of firms that would then sell the retail operations to mall landlords Simon and Brookfield Property Partners.
The competing creditors say the deal denies them the chance to get more of their money back. They want to delay a Nov. 2 hearing on the real estate sale until Nov. 24.
This is not the first delay for the agreement. Bloomberg reported earlier this month that talks between the first set of lenders and mall landlords stalled before a weekend marathon mediation session.