%1

In a motion to stay the issuance of the mandate, the government has announced that it will be filing a petition for certiorari asking the Supreme Court to review the Second Circuit’s Purdue decision allowing bankruptcy courts to issue releases to nondebtors. The Second Circuit’s May 30 decision reversed the district court and reinstated the bankruptcy court’s confirmation of the chapter 11 plan of Purdue Pharma LP. The New York-based court of appeals held that chapter 11 plans may include nonconsensual releases of creditors’ direct claims against nondebtors. Purdue Pharma LP v. City of Grand Prairie (In re Purdue Pharma LP), 69 F.4th (2d Cir. May 30, 2023). The motion filed by the government on July 7 states that “the [U.S.] Solicitor General has determined to seek review of the panel’s decision in the Supreme Court” before the August 28 deadline. The government’s motion characterized Purdue’s chapter 11 plan as giving absolute, unconditional and permanent releases “from every conceivable type of opioid-related civil” claims to members of the Sackler family that owned and controlled the company.

Serta Simmons Bedding has completed its financial restructuring and emerged from chapter 11 five months after filing for protection under the U.S. Bankruptcy Code in January, Furniture Today reported. The bankruptcy court ruled earlier this month that the company’s plan could move forward. At the time of its filing, the Serta Simmons included a plan to emerge quickly with financing in place. As part of the go-forward plan, the company has put together a board of directors that includes a familiar bedding executive: former chairman and CEO of Simmons Bedding, Charlie Eitel. Mark Genender, managing partner of Bristol Growth Capital and also an alum of the Simmons board, has been appointed chairman. Other members of the board include current CEO Shelley Huff and Brandi Thomas, group vice president and chief audit executive for General Electric, both of whom were already board members. Under the plan, the company says it has “ample liquidity and a more flexible capital structure” to execute its turnaround plan. Through the bankruptcy process, Serta Simmons reduced its debt from $1.9 billion to $315 million, lowering its annual interest expense by more than $100 million. In addition, the company has secured a $100 million revolving credit facility.