School Specialty Creditors Out to Nix 'Make-Whole' Interest

Law360, Wilmington (August 09, 2013, 10:00 PM ET) -- Creditors of reorganized School Specialty Inc. sought Friday to force private equity lender Bayside Finance LLC to accept payment in full on a $23.7 million “make-whole” penalty, contending the firm has refused repayment in order to keep receiving interest while the matter is under appeal.

Replying to Bayside's objection, School Specialty's official committee of unsecured creditors — which in April lost its challenge of the make-whole claim — urged a Delaware bankruptcy judge to order the firm to either take full payment or to stop collecting...
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