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Toys “R” Us – Suppliers Object to Comprehensive Settlement Agreement

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July 31, 2018 – KidCo, The Maya Group HK, Peg Perego USA, Kolcraft Enterprises, LulyBoo, Bexco Enterprises dba Million Dollar Baby, Bassett Furniture Industries, and Export Development Canada (collectively, the “Suppliers”) filed an objection [Docket No. 3973] to the Toys “R” Us Comprehensive Settlement Agreement [Docket No. 3814]. The Suppliers assert, “First, the timeframe to opt-out of the Settlement Agreement is too abbreviated. The opt-out deadline will be no more than nine (9) business days after the hearing on the Motion. The administrative claims of parties will not have been reconciled by the opt-out deadline. It is also unlikely that a plan will be filed by the opt-out deadline, and the failure to opt-out of the Settlement Agreement is an affirmative vote for any to-be-filed plan. Further, creditors’ counsel will have virtually no time to digest the Settlement Agreement, the Motion and order thereon, meet with their clients and perhaps the Debtors and the Committee, and then advise their clients on the Settlement Agreement. Claims reconciliation, the filing of a plan, and a reasonable amount of time to consider the Settlement Agreement all require that any opt-out deadline be further out than August 24, 2018. Second, it is difficult to estimate what the distribution to creditors will be under the Settlement Agreement. The distribution can only be estimated if creditors know the amount of outstanding (1) critical vendor obligations, (2) Section 503(b)(9) claims, and Section 503(b)(1) claims. The Debtors estimate the administrative claims at $800 million, but it is not clear what amounts of the $325 million in critical vendor claims will qualify for payment under the Settlement Agreement, and these critical vendor claims can materially move the needle on the potential distributions under the Settlement Agreement.”

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The post Toys “R” Us – Suppliers Object to Comprehensive Settlement Agreement appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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