As it stands JCP has plenty of assets to sell and fund operations. But if they continue at this pace into 2014 and beyond, you're right the debt will start to be more severely effected. They are burning cash pretty heavy now. The bonds are money good now, but not if JCP continues at this pace. The discount into 80% of par is a caution sign, not a pure sign they are not going to make it. Bonds in the $60's (like Radio Shack) are more a sign of firm on the brink of filing Chap 11. THose are risky.