Contec Exits BankruptcySet-Top and Cable Modem Repair Provider Cuts $250M in Debt, Obtains $25M Financing 11/05/2012 7:21 AM Eastern
Contec Holdings, a provider of set-top and modem repair for cable operators, emerged from Chapter 11 bankruptcy reorganization effective Nov. 2, cutting its debt by about $250 million and obtaining an incremental $25 million in financing.
On Aug. 29, the company -- owned by Bain Capital -- filed a prepackaged plan of reorganization in the U.S. Bankruptcy Court for the District of Delaware. Judge Kevin Carey of the Bankruptcy Court approved the restructuring Oct. 4.
Contec listed liabilities totaling $372.6 million and current assets of $54.6 million as of March 31, 2012, according to documents filed with the court. In mid-2011 a large unnamed service provider customer decided to stop repairing a number of set-top box models “in favor of replacing broken boxes with new set-top boxes capable of providing more extensive services,” which resulted in a significant revenue drop, Contec disclosed in the filings.
“In an extremely short period of time, we were able to reduce our long-term debt and position Contec for expansion over the coming years,” Contec interim CEO Larry Young said in a statement. “All of this, in approximately 60 days, without impacting the relationships we have with our customers, vendors or employees.”
Last month Contec introduced QuickTest, a system that can test more than 100 devices per hour and let MSOs track set-top testing and repair data in real time. QuickTest, which Contec introduced about a year later than it planned, is currently being used by Charter Communications.
“Our message going forward is simple: We are a strong company and we are getting stronger,” Contec chief operating officer Wes Hoffman said in a statement. “We are closely looking at opportunities to expand our business and better serve our cable industry customers.”
Additional information about Contec’s bankruptcy restructuring is available at www.contecinfo.com.