Toys ‘R’ Us Settlement Approved, Clearing Path for Liquidation

Toys “R” Us took a big step toward concluding its bankruptcy when the court overseeing the case Aug. 8 approved a “global settlement” with key players.

Overruling an objection filed by the U.S. Trustee’s office, Judge Keith L. Phillips of the U.S. Bankruptcy Court for the Eastern District of Virginia entered an order approving the proposal.

The agreement includes Toys “R” Us, a group of secured lenders, the Official Creditors Committee, debtor-in-possession (DIP) lenders, an ad hoc group of vendors, and the private equity owners of Toys “R” Us.

It resolves a number of disputes related to the North American ...