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4:23-bk-90020
Texas Southern
Lenders that were excluded from mattress maker Serta Simmons' contentious "uptier" debt exchange failed to persuade a Texas bankruptcy judge Tuesday to temporarily block their opponents from dissipating funds that could be used to compensate them, months after the Fifth Circuit rejected the debtor's transaction.
A Fifth Circuit decision rejecting mattress maker Serta Simmons' controversial "uptier" exchange offers new ammunition for an array of investors excluded from non-pro rata debt transactions, a development that could curb favored creditors and private equity firms' appetite for deals marked by so-called lender-on-lender violence.
Drugmaker Nostrum sought for more time to file a Chapter 11 plan, Swedish debt collection agency Intrum asked a Texas bankruptcy court to enforce its plan that a group of noteholders are opposing, and former employees of a bankrupt drink packager alleged they were unlawfully laid off without any advance warning.
The Fifth Circuit sided with a group of lenders left out of a so-called uptier refinancing deal with mattress seller Serta Simmons, reversing a bankruptcy court's ruling in a closely watched case on liability management transactions; Purdue Pharma secured a one-month extension as its creditors and members of the Sackler family try to reach a settlement in mediation; and retail chain Big Lots reached an eleventh-hour deal to sell some of its stores and thwart a total liquidation.
A Texas bankruptcy judge on Wednesday denied a request to pause Serta Simmons' restructuring while creditors appeal his approval of the mattress maker's Chapter 11 plan, saying the company needs to be allowed to move on from bankruptcy.
Serta Simmons and some of its lenders are asking a Texas bankruptcy judge to reject calls by dissenting creditors to pause the mattress maker's Chapter 11 plan pending their appeal of its approval, saying delay could cost the company billions.
Attorneys representing mattress maker Serta Simmons Beddings told a Texas bankruptcy court Thursday that a 2020 debt refinancing deal was necessary to avoid insolvency at the time, defending the transaction and its Chapter 11 plan.
Bankrupt mattress maker Serta Simmons Bedding LLC opened its Chapter 11 plan confirmation trial Monday by defending a 2020 refinancing transaction that has become the focus of opposition to the plan by lenders who were barred from participating in those new loans.
A group of lenders in litigation with Serta Simmons over a 2020 refinancing deal Thursday told a Texas bankruptcy judge the mattress maker can't insert indemnification of the other participants in the refinancing into its proposed Chapter 11 plan.
A Texas bankruptcy judge Thursday gave mattress manufacturer Serta Simmons Bedding permission to send its Chapter 11 plan out for a creditor vote after the company said it had adjusted the plan in response to creditor comments.