Supreme Court Declines to Hear Controversial Serta Bankruptcy

The US Supreme Court declined to consider whether a new creditor vote is required in Serta Simmons Bedding LLC’s bankruptcy after an appeals court struck down key provisions from its reorganization plan.

The justices rejected the petition Monday to review the US Court of Appeals for the Fifth Circuit opinion, brought by lenders that include Barings LLC, Boston Management and Research Inc., Eaton Vance Management, Invesco Senior Secured Management Inc., and UBS Asset Management (Americas) LLC.

The appeal stems from a dispute over whether appeals courts can strike significant parts of fully consummated reorganization plans—without turning over the whole plan—and ...