Toys ‘R’ Us property company debtors win approval of sale procedures

By Caroline Salls

Pittsburgh, June 25 – Toys “R” Us, Inc.’s Propco II debtors received court approval of the bid procedures for the sale of their assets, according to an order filed Monday with the U.S. Bankruptcy Court for the Eastern District of Virginia.

The Propco II debtors are Toys “R” Us Property Co. II, LLC and Giraffe Junior Holdings, LLC.

TRU Trust 2016-Toys, Commercial Mortgage Pass-Through Certificates, Series 2016-TOYS, acting through special servicer Wells Fargo Bank, NA, has been selected as the stalking horse bidder for the debtors’ assets through a $480 million credit bid.

Under the bid procedures, initial competing bids must be submitted by 5 p.m. ET on July 16.

If the debtors do not receive non-binding indications of interest before the bid deadline that total at least $490 million, then the solicitation process will terminate, and no auction will be held. A sale hearing would then be held on July 30.

If indications of interest equal or exceed $490 million, the debtors may proceed to a second phase of the bidding process, and an auction will be held on Aug. 16.

The bid procedures call for reimbursement to the trust of sale-related expenses if it is not ultimately the high bidder.

Toys “R” Us is a Wayne, N.J., toy retailer. The company filed for bankruptcy on Sept. 19, 2017 under Chapter 11 case number 17-34665.

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