Exhibit 99.1

Fifth Updated DIP Budget

(US $MMs)

 

 

 

    A / F   F     F     F     F     F     F     F     F     F     F     F     F     F     4     5     4    

13-Weeks

 
    Fiscal Month   Oct     Oct     Oct     Oct     Nov     Nov     Nov     Nov     Nov     Dec     Dec     Dec     Dec     Oct     Nov     Dec        
    Fiscal Week   36     37     38     39     40     41     42     43     44     45     46     47     48     39     44     48     4-Oct  
    Year   FY20     FY20     FY20     FY20     FY20     FY20     FY20     FY20     FY20     FY20     FY20     FY20     FY20     FY20     FY20     FY20     thru  
    Week Ending   10-Oct     17-Oct     24-Oct     31-Oct     7-Nov     14-Nov     21-Nov     28-Nov     5-Dec     12-Dec     19-Dec     26-Dec     2-Jan     31-Oct     5-Dec     2-Jan     2-Jan  
  Net Sales   $ 126     $ 133     $ 122     $ 119     $ 142     $ 147     $ 164     $ 309     $ 243     $ 283     $ 318     $ 273     $ 117     $ 500     $ 1,007     $ 990     $ 2,496  

Collections & Disbursements

 

                           

Cash Receipts

 

                           

1

  Sales Receipts   $ 125     $ 136     $ 130     $ 129     $ 134     $ 150     $ 164     $ 273     $ 295     $ 266     $ 314     $ 292     $ 163     $ 520     $ 1,016     $ 1,035     $ 2,571  

2

  Other Receipts     22       8       4       5       5       8       6       6       6       13       15       27       16       38       31       72       141  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Collections

  $ 147     $ 144     $ 134     $ 134     $ 139     $ 158     $ 170     $ 279     $ 300     $ 280     $ 328     $ 319     $ 180     $ 558     $ 1,047     $ 1,107     $ 2,712  
 

Operating Disbursements

 

                           

3

  Domestic Merchandise Vendor   $ (61   $ (53   $ (56   $ (64   $ (62  ) $      (55  ) $      (46  ) $      (53   $ (43   $ (51   $ (64   $ (50   $ (41     (235     (259     (206     (700

4

  Import Merchandise Vendor     (22     (27     (25     (21     (16     (27     (26     (11     (28     (27     (28     (14     (9     (95     (108     (78     (281

5

  Sales, Use, and Other Taxes     (2     (13     (6     (8     (2     (16     (33     (0     (1     (9     (33     (21     (3     (30     (52     (65     (146

6

  Freight, Duty, and Broker     (8     (8     (23     (9     (10     (8     (28     (9     (10     (8     (7     (28     (8     (46     (65     (51     (163

7

  Payroll and Benefits     (16     (41     (27     (38     (18     (39     (21     (24     (38     (32     (35     (28     (35     (121     (140     (130     (392

8

  Occupancy     (5     (8     (7     (13     (20     (10     (12     (15     (18     (8     (7     (13     (4     (34     (75     (32     (141

9

  Non-Marketing Operating (NFR)     (17     (15     (17     (10     (9     (30     (11     (12     (9     (17     (23     (19     (13     (58     (71     (72     (201

10

  Marketing     (5     (13     (5     (7     (7     (19     (7     (5     (5     (10     (10     (15     (11     (31     (44     (45     (120

11

  Other     —         —         —         —         —         —         —         —         —         —         —         —         —         —         —         —         —    
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Operating Disbursements

  $ (136   $ (178   $ (166   $ (170   $ (144   $ (204   $ (185   $ (130   $ (152   $ (161   $ (207   $ (189   $ (123   $ (649   $ (815   $ (680   $ (2,144
 

Non-Operating Disbursements

 

                           

12

  Debt Service and Fees   $ (21   $ (1   $ (1   $ (11   $ (15  ) $      (1  ) $      (1  ) $      (1   $ (10   $ (1   $ (1   $ (1   $ (47     (32     (27     (48     (108

                 13

  Restructuring Professionals     (5     (11     (1     (7     (2     (9     (1     (11     (1     (4     (2     (11     (1     (25     (24     (18     (66

14

  Other Non-Operating     (1     (1     (1     (1     (1     (1     (1     (1     (1     (1     (1     (1     (1     (3     (4     (3     (10
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Non-Operating Disbursements

  $ (26   $ (12   $ (3   $ (18   $ (18   $ (10   $ (3   $ (12   $ (12   $ (6   $ (3   $ (12   $ (49   $ (59   $ (55   $ (69   $ (184
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Cash Flow

  $ (15   $ (46   $ (35   $ (54   $ (23   $ (56   $ (18   $ 137     $ 136     $ 113     $ 119     $ 118     $ 7     $ (150   $ 177     $ 358     $ 384  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Liquidity

                                   

Short Term Investments Position

 

                           

15

  Book Cash - Beginning   $ 875     $ 860     $ 814     $ 779     $ 725     $ 702     $ 646     $ 628     $ 765     $ 901     $ 1,014     $ 1,133     $ 1,251     $ 875     $ 725     $ 901     $ 875  

16

  Plus: Net Cash Flow     (15     (46     (35     (54     (23     (56     (18     137       136       113       119       118       7       (150     177       358       384  

17

  Plus: Revolver Draw/(Paydown)     —         —         —         —         —         —         —         —         —         —         —         —         —         —         —         —         —    

18

  Plus: DIP/Escrow Cash Draw     —         —         —         —         —         —         —         —         —         —         —         —         —         —         —         —         —    

19

  Plus: Treasury Transfers     —         —         —         —         —         —         —         —         —         —         —         —         —         —         —         —         —    
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Short Term Investments - Ending

  $ 860     $ 814     $ 779     $ 725     $ 702     $ 646     $ 628     $ 765     $ 901     $ 1,014     $ 1,133     $ 1,251     $ 1,259     $ 725     $ 901     $ 1,259     $ 1,259  
 

20

  DIP/Escrow Cash   $ 225     $ 225     $ 225     $ 225     $ 225     $ 225     $ 225     $ 225     $ 225     $ 225     $ 225     $ 225     $ 225     $ 225     $ 225     $ 225     $ 225  

21

  Prof Fee Carveout Escrow     (66     (68     (67     (62     (70     (64     (71     (63     (71     (68     (76     (67     (75     (62     (71     (75     (75

22

  Posted ABL Cash Collateral / Cash Collateral L/C     (193     (209     (200     (195     (181     (132     (96     (84     (86     (249     (332     (374     (458     (195     (86     (458     (458

23

  Funded Reserve Account     (25     (28     (28     (28     (28     (28     (28     (28     (28     (28     (28     (28     (28     (28     (28     (28     (28
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Short Term Investments and Escrowed Funds

  $ 801     $ 734     $ 709     $ 665     $ 648     $ 647     $ 658     $ 816     $ 941     $ 893     $ 921     $ 1,007     $ 922     $ 665     $ 941     $ 922     $ 922  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Intra-Month Minimum

  $ 665     $ 665     $ 665     $ 665     $ 647     $ 647     $ 647     $ 647     $ 647     $ 893     $ 893     $ 893     $ 893     $ 665     $ 647     $ 893     $ 647  

Pre-Petition ABL Borrowing Base and Availability

 

   

24

  Effective Borrowing Base   $ 1,305     $ 1,287     $ 1,297     $ 1,303     $ 1,318     $ 1,370     $ 1,410     $ 1,423     $ 1,421     $ 1,244     $ 1,154     $ 1,109     $ 1,018     $ 1,303     $ 1,421     $ 1,018     $ 1,018  

25

  Less: Outstanding ABL Draws     (1,263     (1,263     (1,263     (1,263     (1,263     (1,263     (1,263     (1,263     (1,263     (1,263     (1,263     (1,263     (1,263     (1,263     (1,263     (1,263     (1,263

26

  Less: Letters of Credit     (137     (137     (137     (137     (137     (137     (137     (137     (137     (137     (137     (137     (137     (137     (137     (137     (137
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Subtotal

  $ (95   $ (113   $ (103   $ (97   $ (82   $ (30   $ 10     $ 23     $ 21     $ (156   $ (246   $ (291   $ (382   $ (97   $ 21     $ (382   $ (382
 

27

  Less: Pre-Petition Minimum Excess Availability   $ (98   $ (97   $ (97   $ (98   $ (99  ) $      (103  ) $      (106  ) $      (107   $ (107   $ (93   $ (87   $ (83   $ (76     (98     (107     (76     (76

28

  Plus: Posted ABL Cash Collateral     193       209       200       195       181       132       96       84       86       249       332       374       458       195       86       458       458  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

  $ —       $ —       $ —       $ —       $ —       $ —       $ —       $ —       $ —       $ —       $ —       $ —       $ —       $ —       $ —       $ —       $ —    
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
                                                                                                               


Variance Report

(US $MMs)

 

               1 Week From: 20-Sep to 26-Sep     4 Weeks From: 30-Aug to 26-Sep  
Variance Report(1)  

Week Beginning

Week(s) Ending

    Budget
20-Sep
26-Sep
    Actual
20-Sep
26-Sep
    Budget
$
    Variance
%
    Budget
30-Aug
26-Sep
    Actual
30-Aug
26-Sep
    Budget
$
    Variance
%
 
   Net Sales     $ 117.8     $ 121.7     $ 3.9       3.3   $ 486.5     $ 512.5     $ 25.9       5.3

Collections & Disbursements

 

               

Cash Receipts

                 

1

   Sales Receipts

 

  $ 125.6     $ 139.5     $ 13.9       11.0   $ 517.8     $ 569.5     $ 51.7       10.0

2

   Other Receipts

 

    91.1       73.9       (17.1     -18.8     94.1       80.6       (13.5     -14.3
      

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Collections

    $ 216.7     $ 213.4     $ (3.3     -1.5   $ 611.9     $ 650.2     $ 38.2       6.2

Operating Disbursements

 

               

3

   Domestic Merchandise Vendor

 

  $ (42.2   $ (68.6   $ (26.4     -62.7   $ (218.5   $ (261.2   $ (42.7     -19.5

4

   Import Merchandise Vendor

 

    (68.7     (28.6     40.0       58.3     (252.5     (115.7     136.8       54.2

5

   Sales, Use, and Other Taxes

 

    (19.1     (12.7     6.4       33.6     (40.7     (36.9     3.8       9.5

6

   Freight, Duty, and Broker

 

    (22.1     (14.5     7.6       34.5     (47.3     (31.3     16.0       33.8

7

   Payroll and Benefits       (17.0     (20.2     (3.2     -19.2     (135.2     (105.4     29.8       22.1

8

   Occupancy       (13.1     (16.0     (2.9     -22.1     (47.3     (54.8     (7.5     -15.9

9

   Non-Marketing Operating (NFR)

 

    (22.6     (21.3     1.3       5.6     (68.0     (65.2     2.8       4.1

                 10

   Marketing       (3.0     (6.1     (3.1     -105.3     (18.0     (22.8     (4.8     -26.8

11

   Other       —         (0.1     (0.1     0.0     —         (0.7     (0.7     0.0
      

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Operating Disbursements

 

  $ (207.7   $ (188.2   $ 19.6       9.4   $ (827.5   $ (694.0   $ 133.6       16.1

Non-Operating Disbursements

 

               

12

   Debt Service and Fees     $ (0.5   $ (0.5   $ —         0.0   $ (12.1   $ (2.0   $ 10.0       83.2

13

   Restructuring Professionals

 

    (2.7     —         2.7       100.0     (17.5     (4.6     12.9       73.7

14

   Other Non-Operating       (1.7     (0.2     1.5       86.6     (7.5     (4.2     3.3       44.2
      

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Non-Operating Disbursements

 

  $ (4.9   $ (0.7   $ 4.2       85.1   $ (37.1   $ (10.8   $ 26.2       70.8
      

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Cash Flow

    $ 4.1     $ 24.5     $ 20.5       505.0   $ (252.7   $ (54.6   $ 198.1       78.4
      

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Notes:

 

(1)

This variance report reflects measurements against the Third Updated DIP Budget


Variance Report

(US $MMs)

 

               1 Week From: 27-Sep to 3-Oct     4 Weeks From: 6-Sep to 3-Oct  
Variance Report(1)  

Week Beginning

Week(s) Ending

    Budget
27-Sep
3-Oct
    Actual
27-Sep
3-Oct
    Budget
$
    Variance
%
    Budget
6-Sep
3-Oct
    Actual
6-Sep
3-Oct
    Budget
$
    Variance
%
 
   Net Sales     $ 115.4     $ 136.1     $ 20.7       18.0   $ 480.2     $ 519.3     $ 39.1       8.1

Collections & Disbursements

 

               

Cash Receipts

                 

1

   Sales Receipts

 

  $ 123.1     $ 151.1     $ 27.9       22.7   $ 510.8     $ 581.5     $ 70.7       13.8

2

   Other Receipts

 

    0.7       1.8       1.1       155.8     94.1       80.9       (13.2     -14.0
      

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Collections

 

  $ 123.8     $ 152.9     $ 29.0       23.4   $ 604.9     $ 662.4     $ 57.5       9.5

Operating Disbursements

 

               

3

   Domestic Merchandise Vendor

 

  $ (80.1   $ (68.3   $ 11.8       14.7   $ (236.4   $ (272.2   $ (35.9     -15.2

4

   Import Merchandise Vendor

 

    (45.6     (29.3     16.3       35.7     (233.5     (117.9     115.6       49.5

5

   Sales, Use, and Other Taxes

 

    (4.5     (0.6     4.0       87.6     (44.7     (34.8     9.9       22.1

6

   Freight, Duty, and Broker

 

    (8.3     (6.4     1.9       23.3     (47.6     (32.3     15.3       32.1

7

   Payroll and Benefits

 

    (50.0     (38.3     11.6       23.3     (128.1     (116.0     12.0       9.4

8

   Occupancy

 

    (14.9     (15.6     (0.7     -4.5     (42.8     (44.7     (2.0     -4.6

9

   Non-Marketing Operating (NFR)

 

    (9.7     (22.5     (12.8     -131.2     (58.4     (80.2     (21.8     -37.4

                 10

   Marketing

 

    (3.1     (3.1     (0.0     -0.7     (14.7     (20.2     (5.6     -37.9

11

   Other

 

    —         (0.1     (0.1     0.0     —         (0.6     (0.6     0.0
      

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Operating Disbursements

 

  $ (216.3   $ (184.2   $ 32.1       14.8   $ (806.0   $ (719.1   $ 86.9       10.8

Non-Operating Disbursements

 

               

12

   Debt Service and Fees

 

  $ (29.8   $ (11.2   $ 18.6       62.4   $ (31.3   $ (12.8   $ 18.6       59.3

13

   Restructuring Professionals

 

    (12.4     (6.7     5.8       46.5     (17.0     (8.4     8.6       50.8

14

   Other Non-Operating

 

    (1.7     (0.5     1.2       69.5     (6.9     (4.7     2.2       31.6
      

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Non-Operating Disbursements

 

  $ (44.0   $ (18.4   $ 25.6       58.1   $ (55.2   $ (25.8   $ 29.4       53.2
      

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Cash Flow

    $ (136.4   $ (49.7   $ 86.7       63.5   $ (256.4   $ (82.5   $ 173.8       67.8
      

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Notes:

 

(1)

This variance report reflects measurements against the Third Updated DIP Budget


Covenant Testing

(US $MMs)

 

 

 

                4 Weeks From: 6-Sep to 3-Oct      
Variance Report(1)          Budget
6-Sep
3-Oct
    Actual
6-Sep
3-Oct
    Variance to Budget
%
   

Threshold Test

Cash Flow Tests    Test %                        

1) Actual Receipts

           Test

1

   Sales Receipts      $ 510.8     $ 581.5        

2

   Other Receipts        94.1       80.9        
     

 

 

   

 

 

   

 

 

   

 

 

     

Total Receipts

     85.0 %    $ 604.9     $ 662.4       109.5   Pass
                                   
 

2) Actual Disbs. to Merchandise Vendors

           Test

3

   Domestic Merchandise Vendor      $ (236.4   $ (272.2      

4

   Import Merchandise Vendor        (233.5     (117.9      
     

 

 

   

 

 

   

 

 

   

 

 

     

Total Merchandise Vendor Disbursements

     110.0 %    $ (469.8   $ (390.1     83.0   Pass

3) Actual Disbursements (excl. Pro Fees)

          

3

   Domestic Merchandise Vendor      $ (236.4   $ (272.2    

4

   Import Merchandise Vendor        (233.5     (117.9    

5

   Sales, Use, and Other Taxes        (44.7     (34.8    

6

   Freight, Duty, and Broker        (47.6     (32.3    

7

   Payroll and Benefits        (128.1     (116.0    

8

   Occupancy        (42.8     (44.7    

9

   Non-Marketing Operating (NFR)        (58.4     (80.2    

                 10

   Marketing        (14.7     (20.2    

11

   Other        —         (0.6    
       

 

 

   

 

 

     

Operating Disbursements

     $ (806.0   $ (719.1    
 

10

   Debt Service and Fees        (31.3     (12.8     Test

11

   Other Non-Operating        (6.9     (4.7      
       

 

 

   

 

 

       

Non-Operating Disbursements

     $ (38.2   $ (17.5      
     

 

 

   

 

 

   

 

 

   

 

 

     

Total Disbursements (excl. Pro Fees)

     112.5   $ (844.2   $ (736.6     87.2   Pass
     

 

 

   

 

 

   

 

 

   

 

 

     
                                       

Notes:

 

(1)

This variance report reflects measurements against both the Third Updated DIP Budget


Covenant Testing

(US $ MMs)

 

 

 

         Third Updated DIP Budget           

Actuals

Weekly Build Up

        
Variance Report(1)   12-Sep     19-Sep     26-Sep     3-Oct     Total     12-Sep     19-Sep     26-Sep     3-Oct     Total  

Cash Flow Tests

                       

1) Actual Receipts

                       

1

   Sales Receipts   $ 132.6     $ 129.5     $ 125.6     $ 123.1     $ 510.8     $ 149.5     $ 141.5     $ 139.5     $ 151.1     $ 581.5  

2

   Other Receipts     1.0       1.3       91.1       0.7       94.1       1.5       3.6       73.9       1.8       80.9  
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Receipts

  $ 133.6     $ 130.8     $ 216.7     $ 123.8     $ 604.9     $ 151.1     $ 145.1     $ 213.4     $ 152.9     $ 662.4  
   

2) Actual Disbs. to Merchandise Vendors

 

                 

3

   Domestic Merchandise Vendor   $ (73.7   $ (40.3   $ (42.2   $ (80.1   $ (236.4   $ (56.0   $ (79.3   $ (68.6   $ (68.3   $ (272.2

4

   Import Merchandise Vendor     (58.4     (60.8     (68.7     (45.6     (233.5     (32.7     (27.2     (28.6     (29.3     (117.9
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Merchandise Vendor Disbursements

  $ (132.2   $ (101.1   $ (110.8   $ (125.7   $ (469.8   $ (88.6   $ (106.6   $ (97.2   $ (97.7   $ (390.1
   

3) Actual Disbursements (excl. Pro Fees)

 

                 

3

   Domestic Merchandise Vendor   $ (73.7   $ (40.3   $ (42.2   $ (80.1   $ (236.4   $ (56.0   $ (79.3   $ (68.6   $ (68.3   $ (272.2

4

   Import Merchandise Vendor     (58.4     (60.8     (68.7     (45.6     (233.5     (32.7     (27.2     (28.6     (29.3     (117.9

5

   Sales, Use, and Other Taxes     (2.5     (18.5     (19.1     (4.5     (44.7     (0.9     (20.7     (12.7     (0.6     (34.8

6

   Freight, Duty, and Broker     (8.0     (9.2     (22.1     (8.3     (47.6     (6.5     (5.0     (14.5     (6.4     (32.3

7

   Payroll and Benefits     (18.2     (42.9     (17.0     (50.0     (128.1     (27.1     (30.5     (20.2     (38.3     (116.0

8

   Occupancy     (7.3     (7.5     (13.1     (14.9     (42.8     (6.2     (7.0     (16.0     (15.6     (44.7

9

   Non-Marketing Operating (NFR)     (15.4     (10.7     (22.6     (9.7     (58.4     (18.3     (18.1     (21.3     (22.5     (80.2

                 10

   Marketing     (4.9     (3.7     (3.0     (3.1     (14.7     (6.4     (4.6     (6.1     (3.1     (20.2

11

   Other     —         —         —         —         —         (0.1     (0.4     (0.1     (0.1     (0.6
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating Disbursements

  $ (188.5   $ (193.5   $ (207.7   $ (216.3   $ (806.0   $ (154.1   $ (192.7   $ (188.2   $ (184.2   $ (719.1
   

10

   Debt Service and Fees     (0.5     (0.5     (0.5     (29.8     (31.3     (0.5     (0.5     (0.5     (11.2     (12.8

11

   Other Non-Operating     (1.7     (1.7     (1.7     (1.7     (6.9     (0.1     (3.8     (0.2     (0.5     (4.7
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-Operating Disbursements

  $ (2.2   $ (2.2   $ (2.2   $ (31.5   $ (38.2   $ (0.6   $ (4.4   $ (0.7   $ (11.7   $ (17.5
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Disbursements (excl. Pro Fees)

  $ (190.8   $ (195.7   $ (209.9   $ (247.8   $ (844.2   $ (154.7   $ (197.1   $ (188.9   $ (195.9   $ (736.6
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
                                                                       

 

Notes:

 

(1)

This variance report reflects measurements against both the Third Updated DIP Budget


Book Cash Report

(USD $)

 

 

 

         Book Cash Balance  
Consolidated Book Cash Accounts    3-Oct-20  

Debtor Accounts

  

1

 

Short Term Investment

   $ 633,151,678  

2

 

Escrows

     17,017,164  

3

 

International (incl. non-Debtors)

     19,820,646  

4

 

Store Accounts

     3,601,862  

5

 

Other Operating Accounts

     266,945,424  

6

 

Other Domestic non-Debtor Accounts

     4,841,878  

7

 

Cash on Hand (In Stores)

     27,721,852  

8

 

Cash In Transit

     18,131,910  
    

 

 

 

Total Holdings and Subsidiaries Book Cash

   $ 991,232,412  
    

 

 

 
 

Test Threshold

   $ 50,000,000  
 

Minimum Required Book Cash

     Pass  


LOGO

Fifth Updated DIP Budget — ABL Borrowing Base & Availability as of October 9, 2020 (US $ MMs) Actual Fiscal / Forecast Month Oct F Oct F Oct F Oct F Nov F Nov F Nov F Nov F Nov F Dec F Dec F Dec F Dec F Jan F Jan F Fiscal Week 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 Year FY20 FY20 FY20 FY20 FY20 FY20 FY20 FY20 FY20 FY20 FY20 FY20 FY20 FY20 FY20 Week Ending 10-Oct 17-Oct 24-Oct 31-Oct 7-Nov 14-Nov 21-Nov 28-Nov 5-Dec 12-Dec 19-Dec 26-Dec 2-Jan 9-Jan 16-Jan Availability from Non-PLCC Receivables $                26 $                28 $                30 $                32 $                29 $                26 $                33 $                34 $                38 $                67 $                44 $                55 $                62 $                53 $    24 Availability from Inventory $    1,420 $    1,400 $    1,408 $    1,413 $    1,430 $    1,486 $    1,518 $    1,530 $    1,525 $    1,318 $    1,252 $    1,196 $    1,099 $    980 $ 980 Total Reserves $    (141) $                (141) $                (141) $                (141) $    (141) $    (141) $                (142) $                (142) $                (142) $    (142) $                (142) $                (142) $                (143) $ (143) $(144)    Lower of Calculated BB or Commitment $    1,305 $    1,287 $    1,297 $    1,303 $    1,318 $    1,370 $    1,410 $    1,423 $    1,421 $    1,244 $    1,154 $    1,109 $    1,018 $    890 $ 860 Revolving Commitment                2,350                2,350                 2,350                2,350                 2,350                2,350                2,350
                2,350                 2,350                2,350                2,350                 2,350                2,350    2,350 2,350 Availability 26 Minimum Excess Availability $                (98) $                (97) $                (97) $                (98) $                (99) $                (103) $                (106) $                (107) $                (107) $                (93) $                (87) $                (83) $                (76) $                (67) $    (64) 27 Letters of Credit                (137)                (137)                 (137)                (137)                 (137)                (137)                (137)                 (137)
                (137)                 (137)                (137)                (137)                 (137)                (137)    (137) 28 Borrowings    (1,263)                (1,263)                 (1,263)                (1,263)    (1,263)    (1,263)                 (1,263)                (1,263)
                (1,263)    (1,263)                 (1,263)                (1,263)                 (1,263)    (1,263) (1,263) 29 Required Cash Collateral Posting                193                209                 200                195                 181                132                96                 84                86
                249                 332                374                458                 576    604 ABL Availability $                —$                —$                 —$                —$                 —$                —$                —$                 —$                —$                 —$                —$                —$                 —$                —$                 -

 


Allocation of Disbursements Report

(US $)

 

 

 

5 Weeks From Week Ending: 08-Aug to 05-Sep

 
Disbursement Type    Retail      Total  

Tradeweave (International Merchandise)

   $ 87,143,657      $ 87,143,657  

Oracle 11i (Domestic Merchandise)

     258,738,229        258,738,229  

Payroll & Benefits

     143,702,157        146,485,379  

Oracle R12 (NFR)

     169,784,142        175,537,933  

Treasury

     94,908,364        131,386,428  

Other

     7,531,346        10,330,906  
  

 

 

    

 

 

 

Total Disbursements

   $ 761,807,895      $ 809,622,531  

Note: Total disbursements of $809.6 million includes $26.2 million of disbursements allocated to encumbered real estate, $18.0 million of disbursements allocated to unencumbered real estate and $3.6 million of disbursements allocated to intellectual property.


ABL Borrowing Base

(As of October 3, 2020)

 

A.

 

Available Credit Card Receivables

   $ 28,476,593     

B.

 

Available Inventory

   $ 1,400,294,983     

C.

 

Availability Reserves

   $ 141,369,100     

D.

 

Borrowing Base (A+B-C)

   $ 1,287,402,476     
 

Lower of:

     
 

Borrowing Base

   $ 1,287,402,476     
 

Revolving Commitment

   $ 2,350,000,000     

E.

        $ 1,287,402,476  
 

Revolving Credit Outstandings:

     
 

Revolving Loans

   $ 1,262,972,284     
 

Standby Letters of Credit

   $ 137,035,059     
 

Commercial Letters of Credit

   $ 0     

F.

 

Total Revolving Credit Outstandings

      $ 1,400,007,343  

G.

 

Facility Availability (E-F)

      -$ 112,604,867  

H.

 

Minimum Excess Availability (7.5% of E up to $200,000,000)

      $ 96,555,186  

I.

 

Facility Availability After Minimum Excess Availability Covenant (G-H)

 

   -$ 209,160,052  
       

 

 

 


Exit Costs Estimate

As of October 1, 2020

(US $ MMs)

 

 

Emergence Related Costs(1)    Estimate  

Description

  

May Rent and Lease Assumption Costs

     (8.6

Contract Cures

     (47.9

Secured / Admin / 503(b)(9) Claims

     (10.0

Other Accrued but Unpaid Administrative Expenses(2)

     (299.0

Accrued Fees(3)

     (97.7

Exit Fee DIP

     (27.0

Assumed New ABL Fees

     (45.0

Assumed FILO Fees

     (10.9

Assumed New Term Fees (DIP Take Back)

     (5.0

Accrued Interest (TL, 1L Notes, DIP, ABL)

     (31.8
  

 

 

 

Total Estimated Emergence Costs

   $ (582.7
  

 

 

 

Notes:

 

(1)

Excludes payment of non-administrative claims, including DIP facility claims and ABL facility / swap liability claims.

(2)

Includes post-petition merchandise, marketing, CapEx, and NFR A/P as per the Business Plan provided on August 4, 2020.

(3)

Includes debtors’ professionals, DIP lenders’ profesionals, ABL lenders’ professionals, UCC professionals, ad hoc equity committee and other accrued fees (including UST).


Net Working Capital Pro-Forma Adjustments and Cash Flow Comparison

Date: 10/5/2020

 

     Pro Forma  
     September
10/3/2020

Forecast
    October
10/31/2020

Forecast
    November
12/5/2020

Forecast
     December
1/2/2021

Forecast
     January
1/30/2021

Forecast
 

Current Assets

   $ 3,690,257,174     $ 3,590,839,300     $ 3,603,538,687      $ 3,640,246,286      $ 3,387,766,460  

Pro-Forma Current Assets

   $ 2,638,510,158     $ 2,697,537,237     $ 2,548,568,075      $ 2,204,663,063      $ 2,177,967,077  

Current Liabilities

   $ 1,030,709,398     $ 1,056,517,905     $ 1,098,752,333      $ 1,048,025,401      $ 936,450,639  

Pro-Forma Current Liabilities

   $ 921,699,036     $ 935,300,499     $ 971,457,514      $ 940,579,846      $ 806,604,151  

Pro-Forma Net Working Capital

   $ 1,716,811,122     $ 1,762,236,738     $ 1,577,110,561      $ 1,264,083,217      $ 1,371,362,926  

Total Monthly Cash Flow

   $ (77,879,050   $ (154,480,043   $ 167,633,141      $ 378,013,010      $ (225,556,319

Note: To address perceived delays in the timing of closing the sale of the OpCo assets to Simon Property Group and Brookfield Property Group (collectively, “S-B”) pursuant to that certain non-binding letter of intent, dated as of September 10, 2020 (the “LOI”), among the Company, S-B and the members of an ad hoc group of lenders and noteholders (the “Ad Hoc Group” and, together with S-B, the “Parties”), the Parties have engaged, and are continuing to engage, in discussions regarding revisions to the purchase price adjustments set forth in the LOI. Specifically, in the course of the Parties’ discussions, the Ad Hoc Group has expressed a belief that the closing should have occurred on October 3, 2020 or closer to October 3, 2020 than an early-to-mid November closing. While the LOI does not specify a closing date, S-B has proposed that the purchase price adjustments set forth in the LOI be adjusted and calculated based on the assumption that the closing of the sale of the OpCo assets will occur on October 31, 2020, which, based on the estimates and projections provided by the Company, would result in an increase in cash available to creditors pursuant to the credit bid relative to the current projected early-to-mid-November closing, but less cash available to the creditors than if the sale closed on October 3, 2020. The Ad Hoc Group has instead proposed the creditors would bear 20% of the reduced cash availability resulting from an assumed closing date of October 3, 2020 (as compared to S-B’s proposal to assume a closing on October 31, 2020) and no part of the reduced cash availability resulting from a post-October closing. The Company estimates the reduction in cash available to creditors assuming an October 31, 2020 closing versus an October 3, 2020 closing would be approximately $104 million, with the cash available to creditors assuming an early-to-mid November closing estimated to be lower than that at October 31, 2020 by an amount that the Company has not been able to estimate at this date and that the Parties have not agreed upon at this time. The Parties reserve all of their respective rights with respect to the matters described in this note and in the disclosure herein and may participate in mediation to further discuss.


LOGO

Business Performance Update Set forth below is a summary of JCP’s business performance through the week ending October 3rd ï,¡ All 844 stores had been reopened as of September 19th, consisting of 690 currently open go-forward locations, 149 currently open non go-forward locations; 5 non-go forward stores have permanently closed following the completion of liquidation sales ï,¡ Enterprise comp sales for September were down 26.5% Opened Stores & Comparable Merchandise Sales Summary (A) Go-Forward Locations (B) Non Go-Forward Locations (C) Closed Locations (A) + (B) + (C) Total Comparable Merchandise Sales Comparable Merchandise Sales Comparable Merchandise Sales Comparable Merchandise Sales Open Stores Current Year Last Year % to LY Current Year Last Year % to LY Current Year Last Year % to LY Current Year Last Year % to LY Total $1,550,831,466 $2,384,974,255 (35%) $315,649,996 $196,295,589 61% $6,280,564 $5,583,429 12% $1,872,762,030 $2,586,853,272 (28%)


Lease Restructuring Savings Summary

 

    Store
Count
  FY 2020
Savings
    FY 2021
Savings
    FY 2022
Savings
    FY 2023+
Savings
    Total
Term
Reduction
Savings
    Total Rent
Abatement
    Total
Rent
Deferral
    Total
Debtor
Cure
    Total Cure
Waiver
    Total
Cure
Deferral
    Total Deal
Savings
(not incl.
Cure)
 

Approved - JCP & Lenders

  160   $ 34,218,238     $ 25,034,248     $ 20,828,782     $ 35,193,209     $ 0     $ 16,116,562     $ 0     $ 4,378,855     $ 4,269,675     $ 0     $ 115,274,477  

Approved by Company

  21   $ 4,805,267     $ 3,889,760     $ 3,327,225     $ 5,204,798     $ 0     $ 2,388,646     $ 0     $ 628,263     $ 628,264     $ 0     $ 17,227,049  

Pending Approval by Company

  —       —         —         —         —         —         —         —         —         —         —         —    

Negotiations Ongoing

  267     —         —         —         —         —         —         —         —         —         —         —    

No Deal Possible

  0     —         —         —         —         —         —         —         —         —         —         —    
 

 

 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

TOTALS (Approved & Submitted)

  181   $ 39,023,505     $ 28,924,008     $ 24,156,007     $ 40,398,006     $ 0     $ 18,505,209     $ 0     $ 5,007,118     $ 4,897,939     $ 0     $ 132,501,526  
 

 

 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Forecasted Performance Summary

 

   

Store
Count

  FY 2020
Sales
    FY 2021 Sales     FY 2022 Sales     FY 2020
Unallocated
Store
Contribution
Profit
    FY 2021
Unallocated
Store
Contribution
Profit
    FY 2022
Unallocated
Store
Contribution
Profit
    FY 2020
Unallocated
Store
Contribution
Margin
(Mean)
    FY 2020
Unallocated
Store
Contribution
Margin
(Median)
    FY 2021
Unallocated
Store
Contribution
Margin
(Mean)
    FY 2021
Unallocated
Store
Contribution
Margin
(Median)
 

Approved - Lease Restructuring Approved by Company and Lenders

  160   $ 892,356,637     $ 1,447,780,749     $ 1,444,365,692     -$ 19,313,632       $ 119,195,324     $ 176,220,250       -2.04     -1.76     7.79     8.83

Approved - Lease Restructuring Approved by Company Only

  21   $ 136,858,782     $ 227,417,542     $ 231,896,956     -$ 476,362       $ 22,260,575     $ 30,770,202       -0.75     0.22     9.58     9.69

Forecasted Performance with Lease Restructuring Summary

 

   

Store
Count

  FY 2020
Sales
    FY 2021 Sales     FY 2022 Sales     FY 2020
Unallocated
Store
Contribution
Profit
    FY 2021
Unallocated
Store
Contribution
Profit
    FY 2022
Unallocated
Store
Contribution
Profit
    FY 2020
Unallocated
Store
Contribution
Margin
(Mean)
    FY 2020
Unallocated
Store
Contribution
Margin
(Median)
    FY 2021
Unallocated
Store
Contribution
Margin
(Mean)
    FY 2021
Unallocated
Store
Contribution
Margin
(Median)
 

Approved - Lease Restructuring Approved by Company and Lenders

  160   $ 892,356,637     $ 1,447,780,749     $ 1,444,365,692     $ 14,904,606     $ 144,229,572     $ 197,049,032       1.92     2.00     10.51     10.27

Approved - Lease Restructuring Approved by Company Only

  21   $ 136,858,782     $ 227,417,542     $ 231,896,956     $ 4,328,905     $ 26,150,335     $ 34,097,427       3.05     2.75     11.56     11.45

Note: Tables above reflect information as of October 6, 2020


SUMMARY - LEASE RESTRUCTURINGS APPROVED BY COMPANY AND LENDERS

(AS OF OCTOBER 6, 2020)

 

LOGO


SUMMARY - LEASE RESTRUCTURINGS APPROVED BY COMPANY AND LENDERS

(AS OF OCTOBER 6, 2020)

 

LOGO

 

(1)

Final Control Date represents exercise of all available extension options.


SUMMARY - LEASE RESTRUCTURINGS APPROVED BY COMPANY ONLY

(AS OF OCTOBER 6, 2020)

 

LOGO


SUMMARY - LEASE RESTRUCTURINGS APPROVED BY COMPANY ONLY

(AS OF OCTOBER 6, 2020)

 

LOGO

 

(1)

Final Control Date represents exercise of all available extension options.


CONFIDENTIAL

SUBJECT TO FRE 408

FOR DISCUSSION PURPOSES ONLY /

SUBJECT TO MATERIAL CHANGE

 

Project Jewel     LOGO  

 

First Lien Minority Group Proposed Transaction

September 23, 2020


CONFIDENTIAL

SUBJECT TO FRE 408

FOR DISCUSSION PURPOSES ONLY /

SUBJECT TO MATERIAL CHANGE

 

Proposed Transaction Structure     LOGO  
    

OVERVIEW

 

 

 

Step 1: Simon / Brookfield to acquire OpCo assets from the Debtors

 

   

Proceeds from OpCo sale to be paid to the Debtors and ultimately distributed to creditors of the Debtors’ estates pursuant to a Chapter 11 plan (the “Plan”)

 

   

Simon / Brookfield LOI contemplates (a) $500mm of Take Back 1L Debt, (b) a $300mm cash equity contribution (subject to a working capital adjustment) and (c) a potential earnout

 

 

Step 21: Bidder formed by the members of the First Lien Minority Group to acquire PropCo from the Debtors for $1.0bn in cash

 

   

Proceeds from PropCo sale used to repay DIP Facility with excess proceeds to be distributed under the Plan

 

 

Any proceeds from LiquidationCo (or liquidation trust interests) to be distributed to the creditors of the Debtors’ estates pursuant to the Plan

 

LOGO

 

1.

Step 2 occurs contemporaneously with Step 1

 

[1]


CONFIDENTIAL

SUBJECT TO FRE 408

FOR DISCUSSION PURPOSES ONLY /

SUBJECT TO MATERIAL CHANGE

 

Summary Term Sheet     LOGO  
    

 

BIDDER   

•   An entity to be formed by the members of the First Lien Minority Group

BID   

•   Bidder will acquire all of the equity interests of PropCo, which will own the 160 owned and ground-leased store properties (“Store Properties”) and six distribution center properties (“DC Properties”) as contemplated in the DIP Lender Group’s credit bid term sheet, for $1.0bn in cash

 

•   PropCo will also own all fixtures, equipment and other goods (other than inventory) contained within such properties (and any tort claims, insurance proceeds and general intangibles directly related to such properties)

MASTER LEASE AGREEMENTS   

•   Consummation of PropCo acquisition will be conditioned on consummation of the sale of OpCo assets to OpCo Buyer as contemplated by the Simon / Brookfield LOI

 

•   PropCo will lease the Store and DC Properties to OpCo Buyer pursuant to master leases on the terms included in the Simon / Brookfield LOI

EXCLUDED ENTITIES   

•   OpCo

 

•   LiquidationCo

DEFINITIVE AGREEMENTS   

•   Consistent with terms outlined in the DIP Lender Group’s credit bid and APA term sheets (as applicable to PropCo)

 

[2]


CONFIDENTIAL

SUBJECT TO FRE 408

FOR DISCUSSION PURPOSES ONLY /

SUBJECT TO MATERIAL CHANGE

 

Transaction Recoveries Analysis

First Lien Minority Lender Group Proposal     LOGO  
    

 

     Distributable  
($ in millions)    Value  

Cash to Lenders (post-OpCo Sale)

   $ 300  

OpCo Sale Take Back 1L Debt

     500  

PropCo Sale Cash

     1,000  

LiquidationCo

     [TBD
  

 

 

 

Total

   $ 1,800  

 

     Claims      % of Class     Recovery      % Recovery  

DIP Facility

          

DIP Lender Group

   $ 844        93.8   $ 844        100.0

Minority Lender Group

     56        6.2     56        100.0
  

 

 

    

 

 

   

 

 

    

 

 

 

Total

   $ 900        100.0   $ 900        100.0
       

Distributable Value Remaining

                    $ 900     

1L Debt

          

DIP Lender Group

   $ 1,177        74.9   $ 674        57.3

Minority Lender Group

     304        19.4     174        57.3

Other 1L Lenders

     90        5.7     52        57.3
  

 

 

    

 

 

   

 

 

    

 

 

 

Total

   $ 1,571        100.0   $ 900        57.3

 

Note:

Based on disclosed First Lien Minority Group holdings as of 9/18/20

 

[3]


CONFIDENTIAL

SUBJECT TO FRE 408

FOR DISCUSSION PURPOSES ONLY /

SUBJECT TO MATERIAL CHANGE

 

Disclaimer     LOGO  
    

This presentation has been prepared by Moelis & Company LLC (“Moelis”) for the members of the ad hoc group of First Lien Term Loans and First Lien Notes (the “Ad Hoc Group”) of J.C. Penney Company, Inc. (the “Company”) represented by Akin Gump Strauss Hauer & Feld LLP in connection with a discussion regarding the matters described herein based on information provided by the Company and publicly available information. Moelis has not assumed any responsibility for independently verifying the information herein, Moelis makes no representation or warranty as to the accuracy, completeness or reasonableness of the information herein and Moelis disclaims any liability with respect to the information herein. In this presentation, Moelis has used certain projections, forecasts or other forward-looking statements with respect to the Company and/or other parties which were provided to Moelis by the Company, such other parties and/or is publicly available and which Moelis has assumed were prepared based on the best available estimates and judgments of the preparer as to the future performance of the Company and/or such other parties. This presentation speaks only as of its date and Moelis assumes no obligation to update it or to advise any person that its conclusions or advice has changed.

This presentation is solely for informational purposes. This presentation is not intended to provide the sole basis for any decision on any transaction and is not a recommendation with respect to any transaction. The recipient should make its own independent business decision based on all other information, advice and the recipient’s own judgment. This presentation is not an offer to sell or a solicitation of an indication of interest to purchase any security, option, commodity, future, loan or currency. It is not a commitment to underwrite any security, to loan any funds or to make any investment. Moelis does not offer tax, accounting or legal advice.

Moelis provides mergers and acquisitions, restructuring and other advisory services to clients and its affiliates manage private investment partnerships. Its personnel may make statements or provide advice that is contrary to information contained in this material. Our proprietary interests may conflict with your interests. Moelis may from time to time have positions in or effect transactions in securities described in this presentation. Moelis may have advised, may seek to advise and may in the future advise or invest in companies mentioned in this presentation.

This presentation is confidential and may not be disclosed to any other person or relied upon without the prior written consent of Moelis.

 

[4]