THLee-owned Nortek files for bankruptcy

NEW YORK (Reuters) - Nortek Inc, a U.S. building products manufacturer owned by private equity firm Thomas H. Lee Partners, has filed for bankruptcy after agreeing on a restructuring plan with creditors, according to court documents.

Nortek, which makes products like air conditioning systems, garage door openers and home theater systems, had been negotiating for months with creditors, including Bank of America, GE Capital and Wells Fargo. The restructuring plan aims to eliminate $1.3 billion in debt.

In its Chapter 11 filing on Wednesday with the U.S. Bankruptcy Court for the District of Delaware, the company said it had been squeezed by its high debt load and a decline in residential new construction and home remodeling.

Nortek estimated its assets at $1.65 billion and liabilities at $2.77 billion, the court papers showed.

On Tuesday, Rhode Island-based Nortek and its parent, NTK Holdings Inc, said Nortek had received votes accepting the prepackaged plan of reorganization from all voting classes of its creditors.

Thomas H. Lee bought Nortek in 2004 in a deal valued at $1.75 billion including debt. The company has 4,534 employees in North America. Another THLee company, mattress maker Simmons Co, is also working on a prepackaged restructuring that includes bankruptcy.

The case In re: NTK Holdings Inc, U.S. Bankruptcy Court, District of Delaware, No 09-13611. (Reporting by Caroline Humer in New York and Sakthi Prasad in Bangalore; Editing by Anshuman Daga and John Wallace)