Robertshaw U.S. Holding has filed for bankruptcy as the appliance parts maker seeks to cut debt by roughly $670 million and resolve lender litigation, WSJ Pro Bankruptcy reported. The company, owned by One Rock Capital Partners, has a proposed restructuring agreement to be acquired by a group that includes secured lenders Bain Capital, Eaton Vance and Canyon Partners, according to a Thursday filing in the U.S. Bankruptcy Court in Houston. Robertshaw also will consider other offers through a court-supervised sale process. The deal would need court approval to take effect. Robertshaw owes $833 million to secured lenders, as well as $37 million to vendors and services suppliers, the court paper shows. Besides “looming maturities and a challenging capital structure,” Robertshaw is still dealing with the enduring impact of pandemic-era product shortages and supply-chain disruptions, Chief Executive John Hewitt said in a sworn declaration. Also, a relocation of a major product line that was intended to reduce costs instead created inefficiencies, which actually increased costs, Hewitt said. Robertshaw hopes to resolve lawsuits filed last year by creditors left behind from financing deals the company made earlier 2023. Robertshaw said it is suing Guardian Life Insurance and Invesco during its bankruptcy proceedings, seeking a ruling that its 2023 transactions were valid.
