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Simon, Brookfield, to save JC Penny from bankruptcy, retain 650 stores

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Simon, Brookfield, to save JC Penny from bankruptcy, retain 650 stores

JC Penney store in Laguna Hills, California.

Scott Mlyn | CNBC

US shopping center owners Simon Property Group and Brookfield Property Partners are close to completing a $ 800 million deal to save JC Penney department store chain from bankruptcy, avoid liquidation and save some 70,000 jobs and 650 stores, Joshua Sassberg of law firm Kirkland & Ellis said Wednesday.

Simon and Brookfield will pay about $ 300 million in cash and take on $ 500 million in debt, Sassberg said during a court hearing.

Wells Fargo also agreed to provide Penney with a $ 2 billion revolving loan upon completion of the transaction, leaving the retailer with $ 1 billion in cash, he said. Penny plans to get bankruptcy judge approval for this rescue deal early next month.

Meanwhile, the hedge funds and private equity firms that financed Penny’s bankruptcy are set to acquire ownership of some of the retailer’s stores and distribution centers in exchange for forgiving part of Penny’s $ 5 billion debt burden. Penney’s lenders, led by H / 2 Capital Partners, will own the assets in two different real estate investment funds, or REITs, Sassberg said.

Hit hard coronavirus pandemic Having absorbed excessive debt, Penny filed for Chapter 11 bankruptcy protection in May. At the time, he had about 850 locations.

Dozens of other retailers, including department store chains Neiman Marcus, Stage Stores and Lord & Taylor, filed for bankruptcy protection during the Covid-19 crisis. Some retailers have not found buyers who could save them. Lord & Taylor, the country’s oldest department store operator, and Pier 1 Imports home furnishings chain are in the process of liquidation.

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Negotiations to save Penny have been going on for weeks. During a hearing on August 31, Kirkland & Ellis’ Sussberg said negotiations with the highest bidder, which included Penny’s homeowners, had come to nothing. Instead, Penny’s lenders were about to prepare a loan application to own the retailer as a separate company, he said it was about time.

Penney’s revenues and market value have declined over the years, with shoppers visiting its stores less often and buying online instead. The company’s net sales in 2019 were $ 10.7 billion, up from $ 12.6 billion in 2015.

Sassberg also previously said that Penny’s vacant property was valued at $ 1.4 billion when the lights are onand $ 704 million in the dark. The retailer’s real estate values ​​have dropped over time, especially during the pandemic, as there is less and less desire to own bulky anchor sites in shopping centers.

Any deal between Simon and Brookfield is still subject to court approval and competing proposals.

Simon has already made deals this year rescue men’s suit manufacturer Brooks Brothers and denim retailer Lucky Brand from bankruptcy, having teamed up with licensing firm Authentic Brands Group to do so. He had previously also teamed up with ABG and Brookfield to rescue Forever 21. Brookfield said in May that it was plans to spend $ 5 billion to rescue retailers hit by the pandemic

Analysts believe that, among a number of reasons, mall owners may try to save Penny to prevent the appearance of several empty department stores in shopping centerswhich could potentially lead to so-called joint lease clauses that allow other retailers in the mall to renegotiate their own leases or be waived. The Penney ownership would also give Simon and Brookfield the opportunity to more easily refocus their properties if some of the Penney stores in their malls closed.

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Representatives for Simon and Brookfield did not immediately respond to CNBC’s requests for comment.

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Economy

Everything has been delivered. 10 Bugatti Centodieci are already in the hands of the owners

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Everything has been delivered.  10 Bugatti Centodieci are already in the hands of the owners

OAll Bugatti Centodieci have been delivered, the Molsheim-based brand said on Monday. Cristiano Ronaldo received the number 07 in October this year. and Bugatti has now revealed that the latest unit – #10 – is already in the possession of its owner.

“The Centodieci combines all the values ​​of the Bugatti brand in an extraordinary package: rarity, innovation, heritage, craftsmanship and unrivaled performance. The production batch of 10 units was so in demand by our customers that it was sold before the Centodieci. was even officially presented,” said Christophe Piochon, president of Bugatti.

This latest example is finished in Quartz White with carbon fiber trim on the bottom and matte grilles. The brake calipers are painted in Light Blue Sport, as is the logo on the rear that refers to the EB110, the iconic Bugatti model that inspired this Centodieci. Inside, the predominant color is also blue, as you can see in the images above.

This block is powered by the same block as the other nine instances. The 8.0-liter W16 with four turbines is capable of developing 1600 hp. In terms of performance, this allows the Centodieci to hit 100 km/h in just 2.4 seconds and reach a top speed of 380 km/h.

Recall that each unit costs the owners eight million euros before taxes.

Read also: We already know when the Bugatti Centodieci fell into the hands of Ronaldo.

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Economy

The first Dacia hybrid. “The cheapest hybrid family on the market”

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The first Dacia hybrid.  "The cheapest hybrid family on the market"

BUT Dacia revealed this Monday that the hybrid engine has been available since March on the Jogger, the Romanian brand’s model known to be available with a seven-seat variant.

The Jogger Hybrid 140, Dacia’s first hybrid, will hit dealerships in March, but customers can expect and order it as early as January.

The price has been revealed by Dacia and since it’s only available in the seven-seater SL Extreme, it starts at €28,800. The brand claims it is “the most affordable hybrid family car on the market.”

Available in six existing colors to celebrate the launch of this hybrid, there will be a slate gray version, as you can see in the images above.

Equipped with a 1.6 liter four-cylinder petrol engine with 90 hp, the Jogger is also powered by two electric motors (a 50 hp engine and a high-voltage starter-generator). The total power is 140 horsepower. The electric transmission is automatic, four-speed, connected to an internal combustion engine, and two speeds are connected to an electric motor. This combined technology was possible, according to Dacia, only due to the lack of clutch.

Combined with the energy recovery levels of the 1.2kWh (230V) battery pack and the efficiency of the automatic transmission, regenerative braking delivers all-electric traction on 80% of urban journeys and saves up to 40% of fuel compared to a combustion engine vehicle.

Read also: Dual-fuel Dacia Jogger Eco-G. We tried 5 seater and LPG…

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Economy

See how Tesla tests its electric Semi truck in the worst-case scenarios

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Tesla Semi camião elétrico testes

Tesla has finally been able to bring its long-awaited Semi to market. This electric truck promises to revolutionize transportation and bring all the unique characteristics of this type of electric vehicle to this class of vehicles.

Now that the first units have been delivered, there is hope that they will finally be mass-produced and reach more transport companies. With so many promises to be kept, a new video is now emerging showing Tesla testing its Semi truck under worst-case scenarios.


Tesla Semi is already on the market

Like all Tesla electric vehicles, Semi follows the same line of creating a unique design associated with a platform with the most modern technology available. The proof is in what was presented to the public and surprised most people.

To prove the quality of this new proposal, Tesla published in your LinkedIn account new video. In it, he reveals some of the testing he's done to determine the strength and quality of the Semi's design and its (potential) durability.

Tests to prove its durability

It has been revealed that the Tesla electric truck is subjected to numerous tests and its application in the worst scenarios that drivers may face. It doesn't stop at the ruggedness of the Semi's designs, but goes further and focuses on the motors and batteries themselves.

This is the proof that many have been waiting for to ensure that this new proposal is not limited to a lot of autonomy. Its resistance is great and will provide greater durability, further enhancing the Semi's value and performance.

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high quality electric truck

Tesla has already showcased the Semi's quality with a video showing its truck driving roughly 500 miles on just one charge. The big news here is that he managed to make this long journey with a maximum load of about 37 tons.

Now Tesla remains to widely place the Semi on the market. At the moment, only a few companies have access to this new product, with a very long list of pending deliveries, who want to start mass-using this electric truck offering.

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