Filing a Proof of Claim for Toys R Us Administrative Expenses

With the liquidation of all Toys R Us stores in the US, suppliers will need to file a proof of claim for postpetition invoices to ensure payment. These admin claims then get paid out by the estate if and when cash becomes available from the liquidation of unencumbered assets.

Background

In mid-March 2018, Toys R Us asked the court for permission to liquidate its US holdings.  At that time it also asked for an administrative stay.  The purpose of the stay is to ensure the estate is not overrun with supplier demands for immediate payment on postpetition invoices.

Administrative claims, which include most debt incurred by the debtor after the petition date, have priority over unsecured prepetition claims, but not over prepetition secured claims. In the case of Toys and in most large cases, DIP financing also enjoys a super priority. Because  there is so much secured and super priority debt in this case, there is a real threat of insolvency inside of the bankruptcy case, known as administratively insolvent and means that postpetition administrative claims may not be paid in full.

Administrative Claims Form

In mid-April, Toys R Us filed a motion setting a bar date for administrative claims and establishing procedures for filing proofs of administrative claims. A proof of claim form for administrative claims in the Toys R Us case can be found here.  You may not email the claim form so, to submit electronically, you should go to Prime Clerk’s website, here.

Note that this is not meant to be used for 503(b)(9) claims for goods that were delivered in the 20 days prior to the petition date, September 18, 2017.

Filing Requirements

• For expenses through June 30, claims must be filed by July 15, 2018
• For expenses after June 30, claims must be filed monthly on the 15th of the following month (i.e. August 15th for July expenses)
  • 14 days after a hearing regarding a Plan of Liquidation, Structured Settlement, or other resolution
• Claim forms must be actually received by Prime Clerk on or before each bar date
• Claim forms may NOT be emailed or faxed

Form Reqirements

Per the motion, each Proof of Administrative Claim must:

• be written in English
• include a claim amount denominated in United States dollars
• conform substantially with the Proof of Administrative Claim Form provided by the Debtors or Official Form 410
• be signed by the claimant or by an authorized agent or legal representative of the claimant on behalf of the claimant, whether such signature is an electronic signature or is ink
• clearly identify the Debtor against which a claim is asserted, including the individual Debtor’s case number
  • A Proof of Administrative Claim filed under the joint administration case number or otherwise without identifying a specific Debtor, will be deemed as filed only against Toys “R” Us – Delaware, Inc.
• state a claim against only one Debtor and clearly indicate the Debtor against which the claim is asserted. To the extent more than one Debtor is listed on the Proof of Administrative Claim, such claim may be treated as if filed only against Toys “R” Us – Delaware, Inc.
• include supporting documentation as contemplated by Bankruptcy Rules 3001(c) and 3001(d)

The mailing address for physical forms is:

Toys “R” Us, Inc.
Claims Processing Center
c/o Prime Clerk LLC
830 Third Avenue, 3rd Floor
New York, New York 10022

Reach out to Bankruptcy Claim Exchange for help with Toys R Us claims, or for help with your future bankruptcy claims.