WSJ – School Specialty Inc., a distributor of classroom supplies, borrowed $64 million from a private investment fund last year after it couldn’t get a loan from a bank. Its financial problems persisted, and, in January, it sought bankruptcy protection.
Most of the company’s creditors lost money and its shareholders were wiped out. But its last-ditch lender, Bayside Capital, had its loan repaid in full, plus 12.5% interest. It also stands to collect a $23.7 million “early-payment” fee that would vault its profit above 30%, which has prompted a bankruptcy-court challenge by other creditors.
