Spurned Lenders Sue Robertshaw to Undo Controversial Debt Deal

Lenders sued Robertshaw US Holdings Corp., accusing the appliance part maker of violating the terms of its lending agreements when it got a controversial $95 million financing in May, and looking to unravel that transaction.

Earlier this year, the struggling company cut a deal with a handful of lenders, including Invesco Ltd., Eaton Vance Management and Bain Capital LP, to receive new funding. They were allowed to jump ahead of other lenders in the repayment pecking order. Firms that didn’t participate in the transaction, which had been either first or second in line, were now sixth or ...