School Specialty, Inc (fka SCHSQ)

[DFYSW]

I think you're mostly right, especially since the recent filings appear to indicate adversity between the AdHoc DIP Lenders now taking the Bayside path and the Official Committee of Unsecured Creditors feeling left out in the cold.

Interestingly, the Committee seems to advocate most strongly for the Trade Creditors even though Holders of the 2011 Debentures represent by far the single largest group that is impaired (besides equity). Could it be that the noteholders might be satisfied with the crumb of new equity offered in the restructured company? Why have they been silent as the stock has gone from $15 to $0.09 in the two years since they accepted the convertible exchange? It is surprisingly difficult to discover who holds those notes but they would seem to be the closest natural ally to equity.