"cutting the rate on a $500 million loan it’s seeking to repay debt"
Anyone see anything wrong with "getting loan to repay debt"
Exactly how does that work? If I borrow enough money can I get completely out of debt? What happens to the amount I originally borrowed; does someone else have to pay that back for me? How rich will the banks allow me to become before they stop loaning me money become more financially stable? Don't I have to at least pay the interest on the money that I don't owe?
Do you know the difference, can you differentiate the difference between tactical and strategic actions?
JCP is simply pushing for more time to pay its debts, as well as lower rates, as it executes its turnaround plan. This is tactical--helps with short/medium term cash flow/needs, as well as provides more time to proceed further through its turnaround plan.
If JCP were doing this on strategic level--it would certainly be an unworkable shell game. But, this isn't the case--I, for one, believe that it will pay down debt over time as its recovering finances permit.