JCP Craters To Single-Digits As Specter Of Bankruptcy Filing Rises

Why is JCP down nearly 6% 16% this morning?

JCP now trades sub-$10

Here's why:

As we reported in detail yesterday, as part of Goldman's Buy JCP CDS reco, the firm conducted this recovery analysis on the unsecured bonds. Its best case recovery on the unsecureds: 65% (and 13% in the worst case). Translation: equity is "impaired" in pretty much any case.