Personal Finance & Money Asked by Jor70 on May 5, 2021
Earlier this year, I put a large percentage of my wealth into JC Penney Company stock. It was a huge gamble, and I ended up losing big time as the company is now in Chapter 11 Bankruptcy. I haven’t yet sold any of my shares.
I just got a mailing that says "Notice of non-voting status to holders of impaired claims conclusively deemed to reject the plan and notice of option to opt out of third-party releases". I tried reading through it, but it’s very heavy on the legal terminology and I don’t really understand it. I have the option of signing it.
I’m not going to ask if I should sign it. But I do want to know, would signing/not signing this make any difference in protecting my wealth at all? Is this something a lawyer would be able to help with?
You should sign it. As a shareholder of a company, even if it's in bankruptcy and even if it's not really a vote, your voice should be heard by some body and is the fundamental blocks of being a part of the community.
Answered by Anous B King on May 5, 2021
As @Charles E. Grant mentioned in a comment, JCP has been delisted and is currently trading for 11 cents per share. There's no preserving your wealth. For this investment, at this point, it's gone.
I just read an article in my local newspaper that says that the US Bankruptcy Court for the Southern District of Texas approved the sale of the company to its two largest landlords and its primary lenders.
With no other offers in sight, this financing agreement expires November 20th. If that happens, JC Penney will go out of business. And even with acceptance, they're going to close nearly 1/3 of their stores as they restructure. It's going to be a long hard slog for Penneys to recover, even more so because of the pandemic.
My guess is that the papers you received are a vote for or against the sale. However, you shouldn't take my word for it. See if there's some language referring to sale of assets to Brookfield Asset Management and Simon Property Group.
Answered by Bob Baerker on May 5, 2021
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