LEGAL ANALYSIS: Toys R Us rival Taj noteholder groups consolidate, control 89% of tranche - Debtwire

LEGAL ANALYSIS: Toys R Us rival Taj noteholder groups consolidate, control 89% of tranche

13 November 2017 - 12:00 am

The ad hoc group of Toys R Us Taj noteholders that provided the company’s USD 375m DIP package has added four new members—who together hold USD 194m of Taj notes—three of which come from the ad hoc committee of Taj noteholders that had previously opposed the DIP. Owl Creek Asset ManagementRiver Birch Capital and Stonehill Capital Management joined from the competing Taj noteholder committee, accompanied by newcomer Aurelius Capital Management.


The 10-member group now controls in aggregate USD 518.7m of the 12% USD 583m Taj notes due 2021, representing 89% of the Taj notes, up from 351.5m in October. The group also holds close to complete control of the USD 375m Taj DIP (99.73%).




New addition Aurelius is now the largest Taj noteholder (USD 108.7m) in the group, while Loomis Sayles & Co. holds the largest share of the Taj DIP (USD 84m), to go along with its USD 82.7m Taj note position. Silver Point has the second-largest Taj note holdings in the group (USD 97m), followed by BlueMountain Capital Management (USD 72m), which also controls 82.9m of the Taj DIP.


Och-Ziff and CarVal are the only other group members with more than USD 35m of Taj DIP holdings—each controlling approximately USD 70m.


Paul Weiss, Whiteford Taylor & Preston and GLC represent the ad hoc group.


CLICK HERE for Debtwire’s 2019 Holdings Report (in excel).
CLICK HERE for all Toys R Us Chapter 11 filings on Debtwire Dockets.


by Joshua Friedman


Joshua Friedman is a former practicing restructuring attorney. Prior to joining Debtwire, Joshua practiced in the New York offices of Kramer Levin Naftalis & Frankel LLP. He has represented various constituencies in several high-profile restructurings, including Hostess Brands, General Motors, Capmark Financial Group, and Lehman Brothers.


Any opinion, analysis or information provided in this article is not intended, nor should be construed, as legal advice, including, but not limited to, investment advice as defined by the Investment Company Act of 1940. Debtwire does not provide any legal advice and subscribers should consult with their own legal counsel for matters requiring legal advice.