Welcome to WSJ Pro Bankruptcy's Daily Briefing. It's Tuesday, April 28. In today's briefing, Blue Owl investors turned down an opportunity to cash out, Sleep Number obtained a new loan and STG Logistics reached a deal to ease its path out of bankruptcy.

Saba launches strategy for private-credit jitters after tepid response to Blue Owl tender. Less than 1% of shareholders in Blue Owl Capital’s semiliquid private-credit funds took Saba Capital Management and Cox Capital Partners up on their offer to cash out their stakes at a discount.

Boaz Weinstein’s activist investment firm Saba said it would continue trying to capitalize on retail investor anxiety about direct-lending funds, though.

The firm said Monday it would deploy capital into a new strategy focused on dislocations in public and private business development companies, or BDCs, that make high-interest corporate loans. Saba’s strategy will also target closed-end funds, real-estate investment trusts and interval funds, the firm said.

Sleep Number gets $55 million lifeline. Sleep Number, which has been trying to restructure its finances as it warned of a potential bankruptcy, is receiving $55 million in additional liquidity as existing lenders provide a new $25 million term loan and waive certain financial requirements.

The loan matures June 30. The agreement with lenders also includes a waiver of a $30 million minimum liquidity covenant until early July. It also incorporates milestones related to Sleep Number’s efforts to finalize a strategic transaction that repays lenders.

In March, the Minnesota-based designer and retailer of adjustable-firmness mattresses said it hired Guggenheim Securities to evaluate potential offers and to help restructure its balance sheet. Sleep Number raised doubts about its long-term future due to liquidity concerns. Its stock is down roughly 80% from its year-to-date high.

The company has been cutting marketing and research and development costs. With the additional financing, Sleep Number said it will be able to better market new products. At the start of the year, Sleep Number had liabilities of more than $1.2 billion, including $588 million under a bank credit facility. –Becky Yerak

Supreme Court grills Bayer over Roundup risks. The Supreme Court grilled Bayer over whether it is liable for failing to warn consumers that its flagship weedkiller Roundup might cause cancer, in a case that could wipe out thousands of legal claims and help bring closure to a battle that has engulfed the company for years.

Justices across the ideological spectrum on Monday appeared receptive to arguments that the pharmaceutical and agriculture company can be sued for damages under a Missouri law on failure-to-warn, even though the product wasn’t mislabeled under federal law.

A ruling against Bayer would be a blow to the company’s efforts to contain the Roundup litigation, which has cost it billions of dollars. Bayer has explored strategic options, including a potential bankruptcy filing to curb its Roundup litigation costs.

• MAHA Moms Are Protesting Against Pesticides

STG Logistics heads to consensual plan confirmation. STG Logistics has reached a settlement with a pair of minority lenders, clearing a major hurdle ahead of its plan confirmation hearing next month.

The deal puts an end to litigation over a 2024 liability management deal that minority lenders claimed unfairly excluded them. In exchange for dropping the suit, Axos Financial and Siemens Financial Services are set to receive $12 million in cash when STG’s restructuring plan is confirmed.

As part of its chapter 11 proceedings, STG has secured a restructuring support agreement with its majority lender group, led by Fortress and Invesco. The proposed plan grants the group majority ownership upon emergence in exchange for extinguishing more than $1 billion in debt and providing up to $150 million in new capital.

STG filed for bankruptcy in January shortly after a state court judge’s ruling to allow the minority lenders’ lawsuit to continue. The state case has been paused under the bankruptcy, and the minority lenders filed the same lawsuit in bankruptcy court. —Akiko Matsuda

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