When Serta Simmons Bedding LLC filed for bankruptcy in January, the mattress manufacturer was looking to squelch lawsuits from an earlier, out-of-court restructuring that had burned a group of lenders. A recent ruling that preserved part of that deal has likely set a precedent that can be used by other companies, and has lenders trying to figure out how to avoid similar fates.
US Bankruptcy Judge David R. Jones ruled March 28 that a key part of a 2020 emergency refinancing, in which some of Serta’s creditors were pushed to the back of the repayment line, was permissible. The deal ...
