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

Law360, Wilmington (February 15, 2013, 10:31 PM EST) -- 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...
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