US bankruptcy court lets J.C. Penney pay staff, vendors

The U.S. department store chain, known for selling family apparel, cosmetics and jewelry at roughly 850 locations, said it reached an agreement with creditors for about US$900 million of fresh financing to aid operations, while it navigates bankruptcy proceedings.

NEW YORK: J.C. Penney Co Inc said on Saturday a U.S. Bankruptcy Court will allow it to keep paying wages and benefits to workers who will remain on the job after the U.S. department store chain filed for Chapter 11 protection from creditors, and also to pay vendors for goods delivered to its stores.

J.C. Penney, which filed for Chapter 11 protection on Friday, said it received the "first-day" approvals from the U.S. Bankruptcy Court for the Southern District of Texas that included access to and use of about $500 million in cash collateral.