Contec Holdings, a major provider of cable set-top and modem repair and refurbishment services owned by Bain Capital, filed for Chapter 11 bankruptcy protection Wednesday.
The company listed debt of as much as $500 million and assets of as much as $100 million in documents filed with the U.S. Bankruptcy Court for the District of Delaware. In a statement, Schenectady, N.Y.-based Contec said the reorganization process will position it "more competitively in the marketplace and ensure that it can continue to provide outstanding service to its customers."
"This reorganization process will allow Contec to invest in and enhance our capabilities to serve our cable industry customers," Contec chief operating officer Wes Hoffman said in a statement. "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."
Contec said it does not expect any layoffs as a result of the bankruptcy filing. The company anticipates completing the reorganization process within the next 60 days.
Members of Contec's "senior lender group" have agreed to provide a credit facility of $25 million to facilitate a "rapid exit" from the bankruptcy proceedings, according to the company. In addition, certain senior lenders will also provide a debtor-in-possession (DIP) credit facility of $35 million as part of the reorganization to provide working capital.
Bain acquired Contec in 2008 from American Capital, which said at the time that it made $120 million from its two-year investment in Contec, including dividends and profit from the sale, Bloomberg reported.
Contec, founded in 1978, says it handles more than 360 different types of set-top boxes, and also provides modem and satellite receiver repairs, set-top refurbishment and custom remote control manufacturing. It operates facilities in Schenectady, Seattle, Mexico City and Matamoros, Mexico, where it opened a 240,000-square-foot service facility in January 2009.
