Bankruptcy Court approves loan for School Specialty

Bankruptcy Judge Kevin J. Carey approved a $155 million loan by a bondholder group that allows School Specialty, Inc. to continue operations and to pay off a $50 million bankruptcy loan it had received from Bayside Capital.  The judge granted a request by the debtor to draw $129 million from the loan proceeds to continue operations while it restructures under Chapter 11 bankruptcy. Some unsecured creditors had argued that the loan by Bayside Capital was not sufficient and would force the debtor to sell assets too quickly which would result in a lower sales price.

For more details read, “Court Clears Rival Bankruptcy Loan for School Specialty.”