Robertshaw decision crowns winners on both sides

Share

News and Analysis

Robertshaw decision crowns winners on both sides

Max Reyes's avatar
Jane Komsky's avatar
  1. Max Reyes
  2. +Jane Komsky
6 min read

Customers get breaking news ahead of the competition on the 9fin platform. Find out more about what we do for distressed and restructuring.

The decision in the Robertshaw adversary proceeding is a mixed bag for distressed debt investors, and the market could be left trying to untangle its nuances for a while — especially because the judgment revolved around the capitalization of a single term in the super priority credit agreement.

On the one hand, Judge Christopher Lopez for the US Bankruptcy Court for the Southern District of Texas found that the appliance partsmaker violated its credit agreement through a December transaction engineered to keep it out of bankruptcy. That could curtail similar maneuvers by other lenders in the future.

On the other, Judge Lopez determined that Invesco is entitled to monetary damages but not to any equitable remedies, and that an ad hoc group of lenders to Robertshaw consisting of Bain Capital, Canyon Partners, and Eaton Vance did not breach the credit agreement and still count as required lenders. Lopez found that Robertshaw’s financial sponsor One Rock likewise did not breach the agreement.

Read all our public content for free

We won't spam. You can unsubscribe at any time.

What are you waiting for?

Try it out
  • We're trusted by 9 of the top 10 Investment Banks

Cookies & Privacy

We would like to use cookies to improve our service. Is that ok?