J.C. Penney believes it will emerge from bankruptcy-protection before Christmas under a new ownership agreement that would save tens of thousands of jobs.

The retailer said it has filed a draft asset purchase agreement with the two biggest mall owners in the United States. All of J.C. Penney's retail and operating assets will be acquired by Brookfield Asset Management inc. and Simon Property Group through a combination of cash and new term loan debt.

Details on the deal that will save roughly 70,000 jobs and avert a total liquidation first emerged last month during a bankruptcy hearing.