Bloomberg

J.C. Penney (JCP - Get Report) shares jumped 16% after Bloomberg reported the company was preparing for talks that could ease its debt burden ahead of the critical holiday shopping season.

Citing people familiar with the matter, Bloomberg said the department-store chain's advisers and some of its bondholders are close to signing non-disclosure agreements that include receipt of confidential company information.

A spokeswoman for Plano, Texas-based J.C. Penney declined to comment to Bloomberg on its report.

Bloomberg said J.C. Penney bondholders have been pushing for the company to consider a swap or extension on some of its $4 billion of debt ahead of the maturities, in an effort to avoid the last-minute brinkmanship that contributed to the bankruptcies of retailers like Toys "R" Us.

"A bankruptcy filing isn't currently a focus of the anticipated debt talks," Bloomberg reported, citing its sources.

J.C. Penney shares were up 13 cents, or 16%, to 94 cents on Friday.