Serta Lenders Seek Full Appeals Court Review of Debt Deal Ruling

A group of lenders who participated in the controversial Serta Simmons Bedding LLC “uptier” debt deal, recently overturned by the Fifth Circuit, requested a rehearing by the full court.

The petition, filed Tuesday, follows a New Year’s Eve decision by the appeals court that struck down a transaction that benefited some of the bedding company’s lenders by shifting debt repayment priority. The deal was a central issue in the bankruptcy case initiated in 2023.

The transaction was supported by lenders including Barings LLC, Boston Management and Research, Eaton Vance, and Invesco Senior Secured Management Inc., and Credit Suisse Asset Management ...