Bondholders rescind claim against Penney
J.C. Penney Co. says in a regulatory filing Wednesday that bondholders who claimed that the department store chain was in violation of a bond agreement have withdrawn their notice of default.
The struggling retailer had filed a lawsuit in Delaware court last month to block the claim after receiving a letter from law firm Brown Rudnick LLP, which represented more than half of the holders of the company's 7.4 percent bonds due in 2037. The law firm had contended that Penney violated an inventory-secured credit agreement in January 2012 without providing security for the bondholders.
The Plano, Texas, company says in its annual filing that the counsel representing the bondholders withdrew its notice of default on Monday.
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