School Specialty Committee Blasts Speedy Ch. 11 Sale

Law360, Wilmington (February 13, 2013, 10:45 PM EST) -- School Specialty Inc.'s creditors committee asked a Delaware bankruptcy judge Wednesday to withhold approval of the company's proposed bidding procedures, saying the rushed sale process would function more like a foreclosure by private equity firm Bayside Finance Inc. than a competitive auction.

The unnecessarily hasty schedule set out in the motion stems not from a well-formulated sales plan but rather from conditions imposed by Bayside, which is the company's debtor-in-possession lender, secured creditor and proposed stalking horse bidder, according to the committee's objection.

As proposed, the...
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