In In re Serta Simmons Bedding, L.L.C., No. 23-20181, 2024 WL 5250365 (5th Cir. Jan. 21, 2025), as revised (Jan. 21, 2025), the Fifth Circuit Court of Appeals held that the controversial “uptier transaction” undertaken by Serta Simmons Bedding and affiliates in 2020 did not qualify as an “open market purchase” under the terms of its credit agreement, and thus was not permitted. The Fifth Circuit remanded certain aspects of the case back to the U.S. Bankruptcy Court for the Southern District of Texas.
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