Bain Capital’s Contec Holdings files for Chapter 11 bankruptcy
Posted on Tuesday, September 4th, 2012 at 8:12 pm
The cable-box repair company Contec Holdings Ltd. filed for Chapter 11 bankruptcy last week in Delaware, claiming that years of weakening demand for its services has put it in debt. According to the Huffington Post, Contec lists nearly $500 million in debt with only $100 million in assets.
Contec plans to emerge from Chapter 11 bankruptcy and reduce its debt in 60 days. Lenders have agreed to provide the company with $35 million for debtor-in-process financing and a $25 million credit facility.
Operations are expected to continue as normal, and no jobs will be lost during the bankruptcy process. Bain Capital, which was co-founded by Republican presidential nominee Mitt Romney in 1984, acquired Contec in 2008.
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