The U.S. Bankruptcy Court for the Eastern District of Virginia granted either final or interim approval for all of Toys “R” Us Inc.’s first day motions related to its Chapter 11 restructuring. Collectively, the orders granted by the Court at a hearing on Sept. 19 will help ensure that the company continues normal business operations throughout the financial restructuring process.
The Court entered an order granting the company interim authorization to access up to $2.2 billion in debtor-in-possession (DIP) financing, which will be available to U.S., Canadian, and international entities. This DIP financing will be available to support operations during the court-supervised process. The company also received authorization to continue payment of employee wages and benefits and to honor customer programs. Toys “R” Us intends to pay vendors in full under normal terms for goods and services provided after the filing date.
Annonced earlier this week, Toys “R” Us and certain of its U.S. subsidiaries and its Canadian subsidiary voluntarily filed for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Eastern District of Virginia in Richmond, Virginia. In addition, the Company’s Canadian subsidiary sought and was granted protection in parallel proceedings under the Companies’ Creditors Arrangement Act in the Ontario Superior Court of Justice. The Company intends to use these court-supervised proceedings to restructure its outstanding debt and establish a sustainable capital structure that will enable it to invest in long-term growth and fuel its aspirations to bring play to kids everywhere and be a best friend to parents.
Additional information can be accessed by visiting the company’s restructuring website, calling the company’s Information Hotline at 844-794-3476, or sending an email to toysrusinfo@PrimeClerk.com in the U.S. or to email@example.com in Canada.