School Specialty Creditors Say $50M DIP Is For Lender's Gain

Law360, Wilmington (January 29, 2013, 11:05 PM EST) -- School Specialty Inc. noteholders Tuesday blasted the $50 million debtor-in-possession facility proposed by Bayside Capital Inc., alleging the package's roll-up provision, excessive interest and unreasonable milestones are designed for the sole benefit of the private equity firm.

The terms attached to DIP financing would force the Wisconsin-based provider of school supplies into an unnecessarily expedited sales process that would end with Bayside rolling up $95 million in prepetition debt ahead of other creditors and acquiring the company at a fire-sale price, according to an objection filed in...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.