Creditor

Toys R Us creditors’ trust can’t recover $12 million from UPS

By Allison P. Spencer
By Matthew Santoni (April 21, 2022, 7:36 p.m. EDT) – The trust representing creditors in the Toys R Us bankruptcy cannot recover the $12 million the retailer paid UPS, after a bankruptcy judge of Virginia ruled that the 2018 settlement concluding the chain’s transactions had discharged avoidance claims against other creditors.

The creditors’ trust had asserted that the settlement did not apply to UPS because it had been paid in full before the agreement took effect and suffered no loss in the bankruptcy. but U.S. Judge Keith L. Phillips held on. Thursday that the release of the settlement covered past and present creditors.

“Operational language…contains…

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Allison P. Spencer
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