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JCPenney Real Estate Sale Misses Closing as Trust Sets Dec. 26 Deadline

Proceeds earmarked for creditors now hinge on a Dec. 26 deadline.

Overview

  • The Copper Property CTL Pass Through Trust disclosed in a Dec. 22 filing that its previously announced sale to Onyx Partners did not close.
  • Under the notice, Onyx has until Dec. 26 to complete the transaction or the agreement will terminate.
  • In July, Onyx agreed to acquire 119 JCPenney locations for $947 million after the buyer completed due diligence and posted a nonrefundable deposit.
  • The closing, first targeted for September, was postponed several times with the latest expected date of Dec. 22 passing without completion.
  • The trust was created in JCPenney’s 2020 bankruptcy to manage roughly 160 properties, plans to distribute an estimated $928 million to $932 million to creditors if the deal closes, and has not explained the delay or potential impacts on stores.