Toys ‘R’ Us wind-down entity granted closure of Toys Delaware case

By Caroline Salls

Pittsburgh, Oct. 25 – Toys ‘R’ Us, Inc.’s wind-down entity for Toys R Us-Delaware Inc., Wayne Services Legacy Inc., obtained approval from the U.S. Bankruptcy Court for the Eastern District of Virginia on Friday to close Toys Delaware’s Chapter 11 case.

“Throughout these Chapter 11 cases and since the effective date, the debtors and Wayne Services have worked assiduously to object to and settle asserted claims [filed against Toys Delaware], [and] the debtors and Wayne Services have filed numerous rounds of omnibus objections which seek to expunge, reduce and/or reclassify any contested claims,” the case closure motion said.

Wayne Services said that at this time it believes that all or substantially all outstanding claims that would be permitted a distribution in line with the plan have been resolved or allowed.

There are pending adversary proceedings brought by the TRU Creditor Litigation Trust or Wayne Services against various parties seeking recovery of assets, and Wayne Services said it may file additional adversary proceedings for the benefit of Toys Delaware’s creditors.

“The outcome of such adversary proceedings will not have a direct impact on the creditors of Toys Delaware as any funds which are recovered will either be distributed pro rata on account of previously allowed claims or to certain former secured creditors,” the motion said.

“Accordingly, to the extent funds are recovered and distributions will be made, such administrative process does not warrant keeping the Toys Delaware case open,” Wayne Services stated.

Toys ‘R’ Us is a Wayne, N.J., toy retailer. The company filed for bankruptcy on Sept. 19, 2017 under Chapter 11 case number 17-34665.

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