JCPenney could exit Chapter 11 bankruptcy as early as December

American retailer JCPenney has been struggling for past few months to finalise a buyer, but it seems like their woes may come to end soon.

CEO Jill Soltau says that she expects the company to exit Chapter 11 bankruptcy proceedings before the holiday season in December.

JCPenney has filed a draft asset purchase agreement, moving a step closer to finalising the deal with Brookfield Property Partners and Simon Property Group.

Although the deal still needs a court approval among other finer details, in a court hearing in September, Josh Sussberg of law firm Kirk & Ellis confirmed that the mall owner was moving towards a US $ 800 million deal to rescue the company from bankruptcy. This would save over 70,000 jobs and 650 stores.

The next hearing date is set for November.

Earlier, creditors had vehemently opposed the sale of JCPenney to Brooks Property and Simon Property Groups, and some even objected in court to provide competing bids.

However, on Tuesday, the company reiterated plans to have Brookfield and Simon own and operate its retail assets.

Meanwhile, 160 of its real estate assets and its distribution centres will become part of separate property holding company owned by a group of its lenders.