If Toys “R” Us chooses to file for bankruptcy protection as a means of unburdening itself from its significant debt, Morningstar Credit Ratings released a report that the retailer could place $3.6 billion in commercial mortgage-backed securities loans at risk, the Commercial Observer reported yesterday. The toy retailer has reportedly hired law firm Kirkland & Ellis to restructure approximately $400 million in revolving and long-term debt due in 2018, which may result in the bankruptcy filing. Last week, a Toys “R” Us spokeswoman told Commercial Observer that the retailer is currently “evaluating a range of alternatives to address our 2018 debt maturities,” and would provide an update on those activities during its second-quarter earnings call on Sept. 26.
