School Specialty judge denies creditors' motion to quash Bayside claim

By Jim Witters

Wilmington, Del., April 23 - The judge overseeing the School Specialty, Inc. case denied a motion by the official committee of unsecured creditors in which the committee argued lender Bayside Capital, Inc.'s $25 million pre-petition "make whole" provision was invalid, according to documents filed April 22 with the U.S. Bankruptcy Court for the District of Delaware.

The ruling issued by judge Kevin J. Carey means Bayside can increase its credit bid for School Specialty's assets by $25 million.

The debtors and the committee said the make-whole provision in the pre-petition loan agreement was inapplicable.

Carey provided no reasoning for the decision in his order.

School Specialty, a Greenville, Wis.-based education company, filed for bankruptcy on Jan. 28. The Chapter 11 case number is 13-10125.

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