Serta Simmons: Court Awards $400m to excluded lenders in disputed LME saga

On July 7, 2026, following the Fifth Circuit Court of Appeals’ 2024 remand and a March 2026 trial, Judge Christopher Lopez of the U.S. Bankruptcy Court for the Southern District of Texas ruled that the lenders who participated in Serta Simmons Bedding’s 2020 uptier liability management exercise had breached the credit agreement’s pro rata sharing provision and initially awarded the excluded lenders $261.13 million plus mandatory 9% prejudgment interest, for a total exceeding $400 million in the aggregate (subsequently reduced to approximately $105 million plus $57 million in prejudgment interest, after taking into account settlements entered into by certain participating lenders).