Toys ‘R’ Us Lenders, Suppliers, Owners Sign Deal to Split Cash

Toys “R” Us Inc. proposed diverting $180 million from senior lenders in a deal designed to help pay the lawyers, suppliers and employees considered vital to the liquidation of the retailer’s American operations.

So far, senior lenders, a group of suppliers and the official unsecured creditors committee have signed up to support the deal, but employees weren’t part of the proposal, filed late Tuesday night in federal court in Richmond, Virginia. It’s also supported by the company’s owners, Bain Capital Private Equity LP, Kohlberg Kravis Roberts & Co., as well as Vornado Realty Trust, which agreed to give up a ...