Bed Bath & Beyond Unsecured Bondholders’ DIP Challenge Thwarted

Bed Bath & Beyond Inc.’s bankruptcy financing will remain intact after a motion to reconsider the funding brought forward by a group of unsecured bondholders was denied.

• US Bankruptcy Judge Vincent Papalia during a hearing Wednesday found the debtor-in-possession financing was, in fact, necessary and prevented a chaotic tumble into Chapter 11 protection
  • The company received $40 million in new money to finance itself through bankruptcy
  • But the deal also included a sizable roll-up, which brings the lenders’ existing debt to the front of the repayment line
• “On the first day of the case you’re only supposed to approve ...