Toys 'R' Us Judge Orders Fung to Halt Hong Kong Court Action
- Court finds arbitration could interfere in bankruptcy case
- The retailer is tussling with joint-venture partner on value
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Toys “R” Us Inc.’s joint venture partner must drop a court action it filed against the retailer in Hong Kong because the case threatens the sale of Toys’ Asia operation, a federal judge ruled.
The decision is designed to negate an order by a Hong Kong court to suspend the auction of the retailer’s Asia operation. Fung Retailing Ltd. owns a 15 percent stake in that business and filed a case in Hong Kong, claiming it would be harmed by the way Toys was pursuing a sale.