Toys “R” Us Inc. received a commitment from its Taj Noteholders for $80 million in incremental debtor-in-possession (DIP) financing to augment liquidity and support the working capital needs of the company’s operations in Asia and Central Europe.
While the company believes its Asian and Central European operations have sufficient liquidity to fund their current operations based on historical trends, this financing provides these operations greater flexibility to operate, grow their footprint, and build inventory for the important 2018 holiday season. The Taj Noteholders providing this financing remain supportive of these businesses and potential long-term growth prospects.
As of period one ended March 3, 2018, the Company’s Asia operations had approximately $230 million in liquidity comprised of cash and available lines of credit. Central Europe had approximately $28 million of cash.
Toys “R” Us received interim approval of the incremental DIP financing from the United States Bankruptcy Court for the Eastern District of Virginia. Final approval by the bankruptcy court is scheduled for April 27.