School Specialty, a provider of K-12 educational materials and school supplies, reported reaching an asset purchase agreement with an affiliate of Bayside Capital, pursuant to which School Specialty proposes to sell its assets as a going concern via a court-supervised sale process.

School Specialty and certain of its units filed voluntary petitions for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware and is pursuing the sale process under Section 363 of the Bankruptcy Code.

The company said it has secured a new lending arrangement to be provided by School Specialty’s existing asset-based lenders and a commitment for $50 million in additional capital in the form of debtor-in-possession financing from an affiliate of Bayside Capital. This financing is planned to provide School Specialty with ample liquidity to operate the business and meet its ongoing obligations to customers, business partners, suppliers and employees via sale process completion.