Robertshaw’s bid procedures, DIP financing draw objection from Invesco

By Sarah Lizee

Olympia, Wash., March 6 – Robertshaw US Holding Corp.’s motions for approval of bid procedures and debtor-in-possession financing drew objections from lender Invesco Senior Secured Management, Inc., according to documents filed Tuesday with the U.S. Bankruptcy Court for the Southern District of Texas.

Invesco said the bid procedures seek to “tilt the scales” in an ongoing intercreditor litigation that Invesco started in New York prior to the company’s bankruptcy filing. Invesco had filed a lawsuit against Robertshaw in November, alleging the company violated previous facility agreements when it incurred new debt in 2023.

As a reminder, Robertshaw has entered into a restructuring support agreement with a group of lenders that hold about 85% of the debtors’ first-out tranche and about 49% of the debtors’ second-out tranche of a super-priority credit facility with Acquiom Agency Services LLC and Seaport Loan Products LLC as agents.

The RSA is also supported by One Rock Capital Partners, LLC, which holds about 15% of the first-out tranche and 3% of the second-out tranche.

The informal lender group and One Rock Capital put forward a $273 million stalking horse credit bid to recapitalize the business. Robertshaw also plans to obtain $56 million in DIP financing from the prepetition first-out lenders.

“The DIP facility is a transparent attempt to manipulate the bankruptcy process to predetermine the outcome of the litigation concerning the sham transaction,” Invesco said in the DIP objection.

As previously reported, Robertshaw filed a motion last month seeking approval of mediation between One Rock, its lenders and Invesco in an attempt to resolve the disputes.

Robertshaw is an Itasca, Ill.-based designer and manufacturer of systems and controls used in residential and commercial appliances, HVAC and transportation applications. The company filed bankruptcy on Feb. 15 under Chapter 11 case number 24-90052.

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