Mattress Company’s Infamous Debt Deal Gets Court Blessing (1)

Serta Simmons Bedding LLC’s bankruptcy judge said the mattress maker’s contentious 2020 debt deal was made in good faith, a decision that has ramifications for distressed debt investors and deals another blow to a handful of Wall Street giants.

The emergency refinancing at issue provided Serta with $200 million of new cash in order to stay afloat about three years ago, but pushed some lenders back in the repayment line as a result. That triggered lawsuits from left-out lenders including Apollo Global Management and Angelo Gordon & Co.

“There is no evidence of a breach of the implied ...