Court of Appeals ruling in Serta puts uptier transactions on …
3 days ago · The Fifth Circuit Court of Appeals last week overturned a bankruptcy court ruling in the Chapter 11 proceedings of Serta Simmons, holding that Serta’s 2020 uptier transaction that excluded a group of Serta lenders was invalid under the indentures in place at the time governing the company’s term loan debt, and sending the case back to the Houston bankruptcy court for reconsideration.
Fifth Reverses Serta Uptier Transaction Ruling - National Law Review
1 day ago · The Fifth Circuit expressly rejected the argument by Serta and the Prevailing Lenders that Section 1123(b)(3)(A) allowed the indemnity as a settlement of a claim included in a chapter 11 plan as ...
US appeals court rejects controversial debt restructuring manoeuvre
Dec 31, 2024 · A federal appeals court has invalidated a controversial corporate debt restructuring manoeuvre, ruling that a lower bankruptcy court erred in its handling of the 2023 Chapter 11 restructuring of...
Bedtime for Serta: The Fifth Circuit Unravels Serta’s Uptier LME ...
3 days ago · Serta then proposed a Chapter 11 Plan premised upon the capital structure implemented following the uptier. Serta’s final proposed Plan contained an indemnity that only covered certain Prevailing Lenders and other selected parties. The Bankruptcy Court ultimately confirmed this Plan and ruled in favor of the indemnity provision.
Serta's Controversial Debt Deal Reversed By Appeals Court (2)
Dec 31, 2024 · The 2020 uptier deal that gave Serta a $200 million cash infusion wasn’t an allowed open market purchase, a three-judge panel of the US Court of Appeals for the Fifth Circuit ruled on Tuesday, reversing a bankruptcy court opinion.
Fifth Circuit Rules Controversial Serta “Uptier” Exchange Violated ...
3 days ago · On December 31, 2024, the United States Court of Appeals for the Fifth Circuit issued its long awaited opinion in the disputes arising from the controversial “uptier” transaction executed by Serta Simmons Bedding, L.L.C. (“Serta”) in 2020 and the confirmation of Serta’s chapter 11 plan by the Southern District of Texas Bankruptcy Court in 2023.
Serta Debt Ruling Lobs 'Grenade' Into Restructuring Strategies
Jan 3, 2025 · In a statement, Serta said the ruling removed the company’s obligation to indemnify lenders and it tees up a contract dispute between certain creditors over the company’s 2020 debt refinancing. “Serta Simmons Bedding’s business and its restructuring are unaffected by the Fifth Circuit’s decision and the Company continues business as ...
Serta Simmons Debt Restructuring Struck Down by Appeals Court
Dec 31, 2024 · A federal appeals court overturned a bankruptcy plan for mattress-maker Serta Simmons Bedding to hand control of the company to one group of lenders while excluding others, a landmark decision ...
A Tale of 2 Rulings: Serta, Mitel Cases Remind Why Contract …
3 days ago · A three-judge panel of the U.S. Court of Appeals for the Fifth Circuit on Dec. 31, 2024, unanimously held that the debt exchange undertaken by Serta Simmons Bedding (Serta) did not qualify as an "open market purchase" under the terms of Serta's 2016 credit agreement (2016 Credit Agreement).Therefore, the "uptier transaction" was not permitted, with the Fifth Circuit remanding certain aspects ...
5th Circuit rejects Serta Simmons' controversial 2020 debt deal
Dec 31, 2024 · The 5th U.S. Circuit Court of Appeals ruled Tuesday that mattress maker Serta Simmons did not treat its lenders equally in a controversial 2020 debt deal, warning that similar deals involving...