Noteholders and Fung Retailing extend lifeline to Toys 'R' Us Asia

Singapore

NOTEHOLDERS of Toys "R" Us Inc have joined hands with Fung Retailing to extend a lifeline to the toy retailer's operations in Asia.

On Friday, the holders of the TRU Taj LLC's senior secured notes issued by Toys "R" Us Inc , or the Taj noteholders, unveiled a proposed acquisition of an 85 per cent equity in Toys (Labuan) Holding, in a move to separate the Asian business of the toy retailer from its ultimate parent in the US.

The Taj noteholders and Fung Retailing, the owner of the remaining 15 per cent interest in Toys (Labuan) Holding, have agreed to new partnership terms i…