Toys ‘R’ Us property company debtors’ disclosure statement approved

By Caroline Salls

Pittsburgh, July 5 – Toys ‘R’ Us, Inc.’s Propco II debtors received conditional court approval of the disclosure statement for their Chapter 11 plan, according to an order filed July 3 with the U.S. Bankruptcy Court for the Eastern District of Virginia.

The plan confirmation hearing is scheduled for July 30.

The Propco II debtors are Toys ‘R’ Us Property Co. II, LLC and Giraffe Junior Holdings, LLC.

As previously reported, TRU Trust 2016-Toys, Commercial Mortgage Pass-Through Certificates, Series 2016-TOYS, acting through special servicer Wells Fargo Bank, NA, was selected as the stalking horse bidder for the debtors’ assets through a $480 million credit bid.

Under the plan, holders of mortgage loan secured claims against the Propco II debtor will either receive sale proceeds equal to the amount of the claims or receive the assets in the Propco II debtor, depending on the outcome of the sale.

Holders of other secured claims against Propco II will be paid in full in cash, receive the collateral securing their claim or have their claim reinstated.

Holders of priority claims will be paid in full in cash.

Holders of general unsecured claims will receive a share of any sale proceeds remaining after payment of senior claims.

Holders of Propco II interests will receive a share of any sale proceeds remaining after payment of all claims.

Holders of claims against the Giraffe Junior Holdings debtor will receive a share of any sale proceeds remaining after payment to all Propco II creditors and interest holders and senior Giraffe Junior claims.

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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