Photo: NY Times
A compromise among Toys “R” Us Inc., its lenders, and creditors won court approval, with a resolution that creditors will receive at least 22 cents on the dollar.
Market Watch reports that the settlement will protect lenders from future litigation while boosting the recoveries of administrative claims holders, which includes vendors and other creditors that are owed approximately $800 million. Court papers show that Judge Keith Phillips of the U.S. Bankruptcy Court in Richmond, Va., signed off on the settlement last Tuesday.
Toys “R” Us vendors and other creditors will forgo the right to sue the group of lenders who decided to pull the plug on the retailer’s reorganization and send it into liquidation.