School Specialty Bid Plan OK'd, But $145M DIP Offer In Play

Law360, Wilmington (February 15, 2013, 10:31 PM ET) -- A Delaware bankruptcy judge Friday approved School Specialty Inc.'s bid procedures, but only on a preliminary basis, opening the door for creditors seeking to cobble together a $145 million loan that would reorganize the company rather than sell it to a private equity stalking horse.

Friday's hearing pitted private equity firm Bayside Finance Inc. — the company's debtor-in-possession lender, secured creditor and stalking horse bidder — against the recently formed unsecured creditors committee, which fought to hold up the sales process so a related group could...
To view the full article, register now.