JC Penney Bondholders Rescind $326M Default Claim

Law360, Wilmington (March 20, 2013, 2:27 PM EDT) -- Bondholders that declared a default on $326 million of J.C. Penney Co. Inc. debt, prompting a lawsuit from the department store chain, have backpedaled from their claim that the company triggered a default by taking on new debt, according to a letter filed Wednesday in Delaware Chancery Court.

In a letter to Vice Chancellor J. Travis Laster, J.C. Penney attorney Edward Welch said the company received a message Tuesday from the bondholders’ counsel, Brown Rudnick LLP, stating that the bondholders "hereby withdraw and rescind the notice...
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