Reorg

Toys "R" Us, Inc.

Toys ‘R’ Us to File for Bankruptcy in Virginia as Soon as Today; at Least $800M of New-Money DIP Financing in Place

Mon 09/18/2017 09:01 AM

Toys “R” Us Inc., TRU Taj and Toys “R” Us Delaware will be filing for chapter 11 bankruptcy protection in the Virginia Eastern Bankruptcy Court as soon as today, according to sources. The company’s Propco entities may also file for bankruptcy protection, the sources added.

While no plan of reorganization is in place, the company has entered into new-money DIP financing agreements for at least $800 million in the aggregate. The DIP facilities are entity-specific; Delaware is expected to file with at least $500 million in new money DIP financing, while Taj will have the second-largest amount of DIP financing, according to the sources.

In an emailed statement in early September, Toys “R” Us EVP of Global Communications Amy von Walter said that Toys would provide an update on Sept. 26 during its earnings call regarding the company’s efforts to refinance its roughly $444 million in 2018 maturities. Toys’ complete capital structure as of its first quarter ended April 29 is shown below:

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