Toys”R”Us received approval from the U.S. Bankruptcy Court for the Eastern District of Virginia to access the full amount of its more than $3 billion in debtor-in-possession (DIP) financing. JPMorgan served as administrative agent for the financing.

The court also granted final approvals for the company’s “First Day Motions” intended to support the business, including continuing to pay employee wages and benefits, honoring customer programs and paying foreign vendors in full for all goods and services under normal terms.

Dave Brandon, chairman and CEO, said, “We are continuing to provide customers outstanding service whenever, wherever and however they want to shop with us – just as we have for the past 70 years, and will continue to do for decades into the future. Our brick and mortar and web stores around the world are open and continuing to serve customers. As we approach the busy and ever-important holiday season, our teams are working diligently behind the scenes to ensure we can deliver on our commitment to be champions of play and a parent’s best friend.”

As previously announced, Toys”R”Us and certain of its U.S. subsidiaries and its Canadian subsidiary voluntarily filed for relief under Chapter 11 of the Bankruptcy Code. In addition, the company’s Canadian subsidiary sought and was granted protection in parallel proceedings under the Companies’ Creditors Arrangement Act in the Ontario Superior Court of Justice. The company intends to use these court-supervised proceedings to restructure its outstanding debt and establish a sustainable capital

Kirkland & Ellis LLP served as principal legal counsel to Toys”R”Us, Alvarez & Marsal served as restructuring advisor, and Lazard is serving as financial advisor.

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Toys ‘R’ Us Files Bankruptcy, JPMorgan-Led Syndicate Provides DIP