Deals
Toys ‘R’ Us Sale of Asia Unit Threatened by Solus-Cerberus Brawl
- Solus lender group claims sale rules favor Cerberus group
- Dispute centers on future use of Toys’ name for Asia stores
Toys 'R' Us
Photographer: Jeenah Moon/BloombergThis article is for subscribers only.
The sale of Toys “R” Us’s last and most valuable remaining asset, its Asia operations, has become caught up in a battle between two groups of hedge funds over the future use of the brand by stores in that region.
One group of funds, including Cerberus Capital Management and Cyrus Capital Partners, owns notes issued by the Asian stores and would be the lead bidder for the shops. Another group, which includes Solus Alternative Asset Management and affiliates of Oaktree Capital Management, claims control over the rights to the Toys “R” Us name, because it was collateral on loans the funds had made to the company.