The agreement also includes the formation of separate property holding companies, made up of 160 of Penney's real estate assets and all of its owned distribution centers, which will be owned by a group of the company's lenders. Brookfield and Simon will enter into master leases with the lenders for the properties and distribution In addition, the retailer's lenders will forgive $1 billion in debt in exchange for 160 properties and six distribution centers. "With the 2020 holiday season in full swing, we are excited to operate under the new ownership of Brookfield and Simon outside of Chapter 11 and under the J.C. Penney banner," stated CEO Jill Soltau. "We appreciate the efforts of the Court and the support of our creditors in this process and putting us in a strong position to build on J.C. Penney's long track record of taking care of our associates, customers, vendor partners and communities."