Burnham Holdings has announced that Crown Boiler Co., a wholly-owned subsidiary, has commenced a voluntary filing for protection under Chapter 11 of the US Bankruptcy Code on February 25, 2026.
Following the completion of the operational wind-down previously announced, at this point in Crown's business lifecycle, the company believes this is the best course of action to maximize value for the benefit of Crown's creditors.
Burnham Holdings president & CEO, Chris Drew, said this action is a measured step in its long-term plan to optimise the BHI portfolio and focus on high growth businesses.
“Over the past year, we have moved decisively to wind down non-core operations and resolve legacy exposures,” he said.
“By addressing these remaining obligations through a court-supervised process, we are reinforcing our financial flexibility and concentrating our resources on high-growth segments of our core boiler and service businesses."
The court-supervised Chapter 11 process is designed to facilitate an orderly resolution of Crown Boiler's remaining obligations and liabilities, as manufacturing and business activities were previously wound down following the April 7, 2025 announcement.
As part of the initial wind-down, the company recognized all necessary impairments associated with Crown, and no further adjustments are required to the December 31, 2025 financial statements; however, the company cannot estimate the total financial impact of the filing at the time due to its nature and timing.
While the voluntary filing is considered an Event of Default under the current lending arrangements, BHI has proactively received a formal waiver from its banking group, ensuring continued operational stability and overall financial flexibility for its other active subsidiaries as the organization streamlines its legacy exposure.
This restructuring aligns with BHI's broader transformation into a leaner, more efficient organization. The Company remains focused on its Center of Excellence for its high-efficiency boiler products and its expanding commercial service platforms, which continue to see strong market demand.
"We remain focused on delivering long-term value for our shareholders, customers, and employees," Drew said.
"By resolving these legacy liabilities and concentrating on our core boiler and service offerings, we are reinforcing our foundation for sustainable growth and positioning the company to capitalize on evolving market demand."
BHI and Crown Boiler are working with legal and financial advisors throughout the Chapter 11 process. Further details will be provided in accordance with applicable disclosure requirements.