Serta Simmons’ Super Priority Debt Fight Begins at Fifth Circuit

Apollo Global Management Inc. and other creditors of Serta Simmons Bedding LLC asked the Fifth Circuit to reverse a bankruptcy court’s approval of a key piece of the mattress maker’s 2020 senior secured debt reconfiguration.

The bankruptcy court’s ruling has “significant consequences for the parties and the overall market for syndicated loans,” a group of lenders that were excluded from the reconfiguration told the US Court of Appeals for the Fifth Circuit Tuesday in their opening brief.

Serta won Texas bankruptcy court rulings earlier this year that upheld its controversial pre-bankruptcy debt deal, which favored a subset of the company’s ...