Toys“R”Us Bankruptcy Update: Information on the Settlement Agreement & More
August 21, 2018 | The Toy Association is notifying members of updates to the Toys“R”Us (TRU) bankruptcy case and settlement agreement.
- Bankruptcy Court Approves TRU Settlement Agreement
On August 7, the bankruptcy court approved the settlement agreement negotiated between Toys“R”Us, the Official Unsecured Creditors’ Committee, the Ad Hoc Creditors group, and various secured lenders. Details of the settlement agreement were presented in a July 31 call hosted by The Toy Association. Members can access a recording of the call on the Association’s website. Unsecured creditors with administrative claims (503b9 and post-petition claims) must decide by August 24 if they would like to opt out of the settlement agreement.
- Some Unsecured Creditors’ Claims Reassigned
Some unsecured creditors with administrative claims may have received an omnibus motion which allows claims that were made against the wrong entity to be reassigned to the correct entity. If you received such a notice, you should make sure that your claim amount is accurate and has been reassigned to the appropriate legal entity under the bankruptcy. These notices are not an attempt to eliminate the claims.
- Bankruptcy Court Approves Sale of TRU Operations in Spain
On August 7, the bankruptcy court approved the sale of the Toys“R”Us operations in Spain for €35 million less certain intercompany balances. The proceeds of the sale will be used to pay down the DIP lenders.
Questions on this topic may be directed to Paul Vitale, The Toy Association’s executive vice president of finance & operations. Additional details about the settlement agreement will be posted on The Toy Association's Toys“R”Us Bankruptcy Information resource page in the next few days.