Judge OKs School Specialty's $50M DIP Despite Objections

Law360, Wilmington (January 30, 2013, 10:53 PM EST) -- Insolvent educational supply company School Specialty Inc. got clearance for a much-needed $50 million cash injection Wednesday after a Delaware bankruptcy judge gave interim approval to its debtor-in-possession financing package from private equity firm Bayside Capital Inc., following a seven-hour hearing.

Secured lender Bayside Capital and a steering committee of converted noteholders had each offered the Wisconsin-based company a $50 million DIP facility, albeit on vastly different terms, and the court said it would not second-guess School Specialty's decision to accept Bayside's offer.

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