What Happens After You File A Proof Of Claim, and When You Might Get Paid

It is frustrating, after extending credit based on a long relationship and verbal assurances, when a customer files for bankruptcy, leaving a balance that cannot be collected without court approval. Moving forward it is important to protect your rights to maximize both pre and postpetition value to your company. But after filing a proof of claim, the bankruptcy process can be a black box for suppliers trying to make the best decision going forward. Read More

How To Fill Out A Bankruptcy Proof of Claim Form (and Preserve Your Legal Rights)

To preserve your legal rights to payment, it is important that you submit to the Bankruptcy Court a completed proof of claim form that memorializes how much the Debtor owes you, and why. This is not a legal pleading that must be completed by an attorney (although it is a good idea to consult an attorney if you can). Your proof of claim will be kept by the Clerk of the Bankruptcy Court (or a claims agent), but will not appear on the docket of the bankruptcy case. Make sure to submit your proof of claim form as soon as possible, and in any event well in advance of any deadline to submit proofs of claim, known as the Claims Bar Date. Read More

Value Implications of Toys R Us Bid Rejection

An auction for the Toys R Us Canadian assets is scheduled to be held on Monday, with Fairfax bidding for the unit as a going concern at $300 million CAD and likely sitting as the stalking horse.  The US stores, it appears, will be liquidated as announced in March. Isaac Larian’s bid for the US business was rejected by the Company as unqualified. A short analysis of the liquidation value of Toys R Us US assets reveals the reason. Read More

Tops Bankruptcy

On February 21, 2018, Tops Holding II and its subsidiaries filed for bankruptcy. Tops is a grocery chain in the northeast with 169 owned stores and five franchise stores in upstate New York, northern Pennsylvania, and Vermont. 2017 audited financials showed a net loss of $80M on revenue of $2.5B ($14.3M per store, or $275k per store per week). Tops stores average about 45k sqare feet. Both size and sales are right on the per store industry average. Read More

Toys r no longer US

Toys R Us will liquidate

This one is unraveling in a hurry.

Sadly but not unexpectedly, Bloomberg is reporting that Toys R Us (“TRU”) is prepping to liquidate its US stores completely.  This news comes on the heels of two prior announcements of store liquidations.  Read More