J.C. Penney said Wednesday that it has chosen not to make a roughly $12 million interest payment due on April 15, as the coronavirus pandemic takes a toll on its business.
It is entering into a 30-day grace period “in order to evaluate certain strategic alternatives, none of which have been implemented at this time,” Penney said in a filing with the Securities and Exchange Commission.
If the company does not make the payment within the 30-day period, it would result in an “event of default,” with respect to its 2036 Senior Notes, the department store chain said.
