JC Penney Co (NYSE: JCP) shares were trading higher Friday after the company made a $17-million interest payment due May 7 on Thursday, the last day of its five-day grace period.
The company entered into the grace period in order to evaluate certain strategic alternatives, none of which have been implemented at this time and which continue to be considered, according to the 8-K filing.
J.C. Penney has been negotiating financing with banks for a debtor-in-possession loan to secure liquidity for operations during bankruptcy.
Many retailers are under increasing financial pressure due to the COVID-19 pandemic. The company’s net loss for the full year was $268 million in 2019 compared with a $255 million loss the previous year.
J.C. Penney shares were trading up 20.52% at 23 cents on Friday. The stock has a 52-week high of $1.26 and a 52-week low of 14 cents.
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