Report: J.C. Penney files lawsuit to block bondholders from declaring default
New York — J.C. Penney Co. filed a lawsuit on Monday asking a Delaware judge to declare that it is not in a default of its bond agreements, protecting nearly $3 billion of debt from being due in the coming months, Reuters reported.
According to the report, J.C. Penney received a letter earlier on Monday from the Brown Rudnick law firm that said J.C. Penney had breached a covenant of a bond indenture agreement by granting a lien on its inventory. J.C. Penney filed the lawsuit after receiving the letter.
The indenture agreement related to $326 million of outstanding bonds that mature in 2037. However, the letter said that J.C. Penney could be in default on all of its $2.9 billion bond debt, according to the lawsuit.
"We believe this notice of default is invalid, completely without merit and is intended to create self-interested trading opportunities in the market, and we will therefore vigorously defend the interests of J.C. Penney and all of our constituencies," J.C. Penney CFO Ken Hannah said in a statement.
J.C. Penney said in the complaint that the demand from Brown Rudnick came as the company is investing significantly to update its stores.
Target loyalty program comes to Canada
TORONTO — Canadian consumers eager to get their hands on a Target loyalty card can now apply for one. Target Canada announced that pplications for its REDcard products – the Target Debit Card and the Target RBC‡ MasterCard – are now available online at Target.ca/redcard. Guests planning to shop at Target stores in Canada with a REDcard will receive an additional 5% off Target’s already low prices, applied instantly at the time of purchase.
The Target Debit Card, a proprietary card issued by Target Canada, will link to the cardholder’s existing chequing account and can be used only at Target stores in Canada. Royal Bank of Canada will issue the no-annual-fee Target RBC MasterCard, which can be used anywhere MasterCard is accepted. In addition to the instant 5% savings on almost everything at Target stores, Target RBC MasterCard cardholders will earn Target GiftCard Rewards on purchases outside of Target, anywhere MasterCard is accepted.
"Target’s REDcard Rewards program is a key part of our "Expect More. Pay Less." brand promise, offering guests an additional 5% savings on top of our already low prices," said Tony Fisher, president, Target Canada. "We know our guests value the instant savings that come with a REDcard and we want to ensure Canadian guests apply now so they are ready when their neighbourhood Target store opens its doors."
Applications for both cards are available online at Target.ca/redcard. In addition, guests can apply for the Target RBC MasterCard in RBC branches and at rbc.com/target. Once Target stores are open, Canadian guests will be able to apply for both REDcard products in-store. Target plans to open 124 stores across Canada beginning in March/April 2013.
LeapFrog jumps into e-book deal with Disney
EMERYVILLE, Calif. — LeapFrog Enterprises has partnered with Disney Publishing Worldwide to develop e-books for its children’s tablets and game systems.
"Doc McStuffins: Rundown Racecar" and "Wreck It Ralph: Sugar Rush" were developed and produced by Disney Publishing Worldwide for LeapFrog and are available for purchase in the "Just for Fun" section of the LeapFrog App Center for the kid’s learning tablets, LeapPad1 and LeapPad2, and learning video game systems, Leapster Explorer and LeapsterGS.
"We are excited to offer the many talented independent content developers and gaming studios the opportunity to develop new interactive games and apps for the millions of connected LeapFrog platforms around the world," said Greg Ahearn, chief marketing officer at LeapFrog. "The highly experienced team at LeapFrog and Disney Publishing worked closely to ensure these e-books offered kids truly unique reading adventures. We will continue to work with brands such as Disney to provide new and unique ways to engage kids on our award-winning learning platforms."
"Doc McStuffins: Rundown Racecar" and "Wreck It Ralph: Sugar Rush" e-books are available for purchase (MSRP $5.00, for children three years and older) in the LeapFrog App Center. The LeapFrog App Center can be accessed through the LeapFrog Connect Application for LeapPad1, LeapPad2, Leapster Explorer and LeapsterGS.