Contec Holdings, LTD, a company that repairs home cable boxes announced that it has reached an agreement with the majority of its senior lender group to strengthen its financial position and significantly reduce its long term debt.
As part of the process, the New York-based company filed for Chapter 11 reorgnization in U.S. Bankruptcy Court in Wilmington. Often the goal of such proceedings is to get a quick agreement from all creditors. Reuters reported the company is owned by Bain Capital but was purchased after Presidential candidate Mitt Romney left the company.
“This reorganization process will allow Contec to invest in and enhance our capabilities to serve our cable industry customers. We fully expect to build out additional repair and supply chain services to meet current customer demand and to pursue new business opportunities beyond the cable market,” said Wes Hoffman, chief operating officer of Contec.
Contec anticipates completing the process within the next 60 days, with incremental liquidity and capital investment in the Company. Members of the senior lender group have agreed to provide a credit facility of $25 million to aid a rapid exit from reorganization.
