JC Penney Sues To Block 'Invalid' $326M Bond Default

Law360, Wilmington (February 4, 2013, 7:35 PM EST) -- J.C. Penney Co. Inc. on Monday filed suit in Delaware state court to block a group of its bondholders from declaring a default on $326 million in debt, denying that the department store chain has taken on new debt in violation of the bonds’ indenture.

The complaint — filed against bond trustee U.S. Bank NA — contends that J.C. Penney received an improper notice of default Monday from a group holding more than 50 percent of one tranche of the company’s bonds, of which $326 million...
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