Toys ‘R’ Us trust seeks court approval of final distribution

By Sarah Lizee

Olympia, Wash., Aug. 29 – The TRU Creditor Litigation Trust, which was formed with the purpose of investigating and bringing claims against the former executives of Toys “R” Us, is seeking approval of a second and final distribution to beneficiaries, according to a motion filed Monday with the U.S. Bankruptcy Court for the Eastern District of Virginia.

“Since the trust’s inception upon the effective dates of the confirmed plans in early 2019, it has diligently pursued its mandate, including the investigation and pursuit of claims against the debtor’s former directors and officers,” counsel for the trust said in the motion.

“Such efforts resulted in a global settlement and initial distribution to beneficiaries approved by this court last fall.”

After receiving the related settlement payments, the trust started its initial distribution in November 2022 to its beneficiaries, while reserving a relatively small amount from that amount initially distributed to fund the trust’s anticipated wind-down expenses.

The trust now intends to make a second and final distribution totaling about $1.33 million to beneficiaries within 30 days of approval of the proposed order and begin the wind-down and dissolution process shortly thereafter.

The trust will reserve a modest amount of funds to effectuate this wind-down process.

The goal is to dissolve the trust as soon as possible, counsel for the trust said.

As the trust is set to expire on Feb. 1, it is also seeking a one-year extension of its duration in order to effectuate the dissolution process.

The trust is seeking to donate any unclaimed distributions or otherwise remaining funds to one or more 501(c)(3) charities.

Toys ‘R’ Us is a Wayne, N.J., toy retailer. The company filed for bankruptcy on Sept. 19, 2017 in the U.S. Bankruptcy Court for the Eastern District of Virginia under Chapter 11 case number 17-34665.

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