Photo: Photoshop by Business Insider
Bondholders represented by law firm of Brown Rudnick sent JCPenney a notice of default last week claiming the retailer defaulted on bonds due in 2037.JCPenney then filed a lawsuit in Delaware to block that claim saying in a statement that it’s “completely without merit.”
Zero Hedge has an interesting piece speculating that the bondholders may be Carl Ichan trying to crush Bill Ackman.
Of course, this is just speculation. It hasn’t been confirmed.
Icahn and Ackman have been rivals for a decade now and on January 25th, the two hedge fund titans brawled on CNBC. The 76 year-old billionaire investor was hurling brutal insults at Ackman during the segment calling him a “crybaby in the schoolyard.”
A few days later, JCPenney, which Bill Ackman is the largest shareholder of, received the received a Notice of Default, Zero Hedge points out. Zero Hedge also notes that Icahn has been one of Brown Rudnick’s big clients in the past.