Toys ‘R’ Us settles with ‘some’ creditors
Now that the dust has settled on its liquidation sales, Toys “R” Us has entered into a plan to pay off some its creditors, including vendors.
Toys “R” Us has struck a deal with certain debtors and their key stakeholders to resolve disputes and maximize stakeholders’ recoveries. The new plan also avoids what could become a “lengthy, complex, and expensive litigation,” according to documents filed in bankruptcy court this week.
According to the filing, an account will park funds for claims, including a baseline recovery of $180 million for participating creditors, as well as shared recovery after a group of secured lenders receive at least 50% of the $1 billion aggregated funds they were owed according to pre-bankruptcy filings. Creditors have the choice to opt out of the deal.
Former Toys R Us workers could be next on the retailer's list of payouts. Former employees are talking to two buyout firms about a possible hardship fund, according to CNBC.
KKR and Bain, which took the company private in partnership with Vornado Realty Trust in 2005, are considering providing some financial help for workers who were hardest hit by the toy chain’s bankruptcy and liquidation. Vornado has not answered their emails, according to the report.
Toys “R” Us filed for bankruptcy in September, struggling under a heavy debt load and several years of lackluster sales due to increased competition from online competitors and discounters. Despite efforts to restructure its business, on March 15, Toys “R” Us informed a U.S. bankruptcy court that that it would close its U.S. stores.
Following a liquidation sale, the toy retailer finally closed its doors on Friday, June 29.
Toys “R” Us has struck a deal with certain debtors and their key stakeholders to resolve disputes and maximize stakeholders’ recoveries. The new plan also avoids what could become a “lengthy, complex, and expensive litigation,” according to documents filed in bankruptcy court this week.
According to the filing, an account will park funds for claims, including a baseline recovery of $180 million for participating creditors, as well as shared recovery after a group of secured lenders receive at least 50% of the $1 billion aggregated funds they were owed according to pre-bankruptcy filings. Creditors have the choice to opt out of the deal.
Former Toys R Us workers could be next on the retailer's list of payouts. Former employees are talking to two buyout firms about a possible hardship fund, according to CNBC.
KKR and Bain, which took the company private in partnership with Vornado Realty Trust in 2005, are considering providing some financial help for workers who were hardest hit by the toy chain’s bankruptcy and liquidation. Vornado has not answered their emails, according to the report.
Toys “R” Us filed for bankruptcy in September, struggling under a heavy debt load and several years of lackluster sales due to increased competition from online competitors and discounters. Despite efforts to restructure its business, on March 15, Toys “R” Us informed a U.S. bankruptcy court that that it would close its U.S. stores.
Following a liquidation sale, the toy retailer finally closed its doors on Friday, June 29.