Toys R Us Files For Bankruptcy Protection

(RTTNews) - Toys"R"Us Inc. said that the Company and certain of its U.S. subsidiaries and its Canadian subsidiary have voluntarily filed for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Eastern District of Virginia in Richmond, VA.

In addition, the Company's Canadian subsidiary intends to seek protection in parallel proceedings under the Companies' Creditors Arrangement Act or "CCAA" in the Ontario Superior Court of Justice.

The company noted that it intends to use these court-supervised proceedings to restructure its outstanding debt and establish a sustainable capital structure that will enable it to invest in long-term growth and fuel its aspirations to bring play to kids everywhere and be a best friend to parents.

The company's operations outside of the U.S. and Canada, including its approximately 255 licensed stores and joint venture partnership in Asia, which are separate entities, are not part of the Chapter 11 filing and CCAA proceedings.

The Company has received a commitment for over $3.0 billion in debtor-in-possession financing from various lenders, including a JPMorgan-led bank syndicate and certain of the Company's existing lenders, which, subject to Court approval, is expected to immediately improve the Company's financial health and support its ongoing operations during the court-supervised process.