WORLD NEWS

Court approves Toys R Us settlement with creditors and lenders

Published on: 13th August 2018

A compromise agreement between Toys R Us, its lenders and creditors will see creditors receive 22 cents in the dollar.

The settlement will shield the lenders from future litigation, while boosting the recoveries of administrative claims holders, which includes vendors and other creditors owed about $800m. Judge Keith Phillips of the US Bankruptcy Court in Richmond Virginia signed off on the settlement last week.

Under the deal, Toys R Us vendors and other creditors will receive a cash payment of roughly 22 cents on the dollar, with potential for higher recoveries. In return, those vendors and creditors will forgo their right to sue the group of lenders who decided to pull the plug on the retailer’s reorganization and send it into liquidation.

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