Toys ‘R’ Us eyes 180-day exclusivity extension; early talks underway

By Caroline Salls

Pittsburgh, Dec. 5 – Toys ‘R’ Us, Inc. is seeking a 180-day extension of its exclusive periods for filing and soliciting votes on a Chapter 11 plan, according to a motion filed with the U.S. Bankruptcy Court for the Eastern District of Virginia.

The company wants the court to extend its exclusive plan-filing period through July 15, 2018 and the solicitation period through Sept. 13, 2018.

“At the same time that Toys ‘R’ Us has been implementing a worldwide effort to stabilize operations during the holiday season, the company and its advisers have simultaneously been developing a revised business plan, including a detailed review and analysis of their real estate portfolio and lease obligations,” the motion said.

“These efforts will serve as the foundation for restructuring negotiations and the debtors’ ultimate emergence from Chapter 11.”

Toys ‘R’ Us said it has already begun preliminary restructuring discussions with some of its key stakeholders.

“Developing their restructuring strategy, which will include discussions and input from key creditor groups ahead of multi-party negotiations, will take time and significant collaboration among various debt tranches and creditor groups across the debtors’ complex corporate and capital structure,” the motion said.

As a result, the company said it is requesting the proposed extension “to ensure that an appropriate runway is afforded without the distraction (and cost) of exclusivity disputes.”

In addition, Toys ‘R’ Us said “an extension of this length is not by accident: these dates coincide with a potential emergence from Chapter 11 ahead of the next holiday season.”

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

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