JC Penney just issued a great PR titled "JCPenney Clarifies Unfounded Market Concerns Regarding Its Revolving Credit Facility."
A lot of words in there, but in a nutshell it is saying market rumors are vile things and that JCP is promising it will have $2 billion in cash on January 31, 2009 (is this Reg FD kosher?). Other things stated: "The Company paid a $200 million debt maturity from its cash balances in August 2008 and has no debt maturities during 2009. The next debt maturity is approximately $500 million in March 2010, which the Company expects to fund from its cash balances. In addition, based on its current funded status, the Company will not be required to make a contribution to its primary pension plan in 2009 and does not expect to be required to make a contribution in 2010."
And just in case people still don't believe it, a company spokesman adds "JCPenney has one of the strongest balance sheets in the retail industry and a cash position that is more than sufficient for all of our needs. Given this, there is no basis for any concern about our credit facility."
Way to be proactive in addressing rumors... We totally don't think there is anything shady about issuing a press release to refute rumors.
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