Deals
Toys ‘R’ Us Lenders May Swap $760 Million in Debt for Asian Unit
- Company planning to name lender group as stalking horse bidder
- Creditor bid lower than previous $1 billion initial offers
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Senior lenders to Toys “R” Us Inc. will make an opening bid of $760 million for the bankrupt retailer’s Asia operations, far less than the $1 billion offers the company touted just a few months ago.
The lenders would make a so-called "credit bid" by using their senior secured notes in the Asia business rather than cash, and win ownership of the unit during an auction next month in New York, according to court documents filed Saturday. Noteholders eligible to participate include York Capital Management Global Advisors LLC, Barclays Bank Plc and Cerberus Capital Management LP, related court papers show.