In a much-anticipated post-trial decision, the U.S. Bankruptcy Court for the Southern District of Texas granted a declaratory judgment in favor of Serta Simmons Bedding LLC and its debtor affiliates (collectively, the “debtors”), holding that an uptier transaction where minority lenders were primed to the tune of $1.075 billion without their consent did not violate the implied covenant of good faith and fair dealing (GF/FD) under New York Law. The Serta decision is the latest in the ongoing lender-on-lender violence disputes based on inherently flexible loan documents. Financial Restructuring partner Howard Steel and Associates Stacy Dasaro and James Lathrop explain more in ABI Journal.