Toys R Us Canada wants to continue to pay its foreign suppliers, while leaving its North American suppliers to collect whatever money is left at the end of the insolvency process, according to documents filed Tuesday in Ontario Superior Court.
The move would ensure the Canadian subsidiary of the global toy retailer which applied for creditor protection in the U.S. on Monday and in Canada a day later has an uninterrupted supply of merchandise as it heads into the busy holiday shopping season.
In North America, when a company seeks creditor protection, suppliers are required to continue supplying goods without collecting on owed balances.
Suppliers that dont can be held in contempt of court and possibly jailed, but that provision is difficu…
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