J.C. Penney has not made a $17 million interest payment for a senior secured term loan payment that was due on Thursday, it disclosed in a filing with the Securities and Exchange Commission.
“Under the credit and guaranty agreement governing the Term Loan Facility, the Company has a grace period of five business days to make the Interest Payment before such non-payment constitutes an ‘event of default,” the filing said.
Further, “it’s elected to enter into the grace period with respect to the interest payment, in order to evaluate certain strategic alternatives, none of which have been implemented at this time.”
Last month, J.C. Penney has said that it would also miss a scheduled $12 million interest payment due on April 15. That payment has a 30-day grace period.
On May 8, Reuters reported that Penney is planning to file for bankruptcy this week, with plans to close one-quarter of its 850 stores.
The company could not be reached for comment.
(Image courtesy of J.C. Penney)Follow JCK on Instagram: @jckmagazine
Follow JCK on Twitter: @jckmagazine
Follow JCK on Facebook: @jckmagazine