Toys R US edges closer to bankruptcy with claims agent retention

15 September 2017

Toys R US retained claims agent Prime Clerk ahead of a potential Chapter 11 bankruptcy filing, said two sources familiar with the situation.

 

The Wayne, New Jersey-based retailer last week hired Alvarez & Marsal as chief restructuring officer and is currently in talks with creditors over how to fix its balance sheet. The company is also working with Kirkland & Ellis and Lazard. 

 

While the company has roughly USD 444m in upcoming maturities, management is engaged in liability management over its entire capital structure. Holders of the issuer’s B-4 Libor+ 875bps term loan due 2020 more recently organized with Houlihan Lokey and Wachtell.

 

Toys R US and Prime Clerk did not return calls seeking comment.