Toys ‘R’ Us Judge Rules Directors Didn’t Breach Duty on DIP Loan

A judge threw out claims that former Toys “R” Us company directors breached fiduciary duty when they authorized the toy store chain’s bankruptcy financing, while allowing other claims against the group to go forward.

• The ruling came in response to a motion for summary judgment by defendants of four causes of action
• The judge agreed with the former managers that the claims should be dismissed
• Judge denied summary judgment for all other causes of action requested
• Creditors alleged that seven company directors knew they shouldn’t have approved the onerous bankruptcy loans at the outset of the case that put it ...