Contec Holdings, a cable-box repair company owned by Bain Capital, announced it has filed for bankruptcy after reaching an agreement with the majority of its senior lender group to strengthen its financial position and significantly reduce its long-term debt.

The company’s reorganization plan was filed in the U.S. Bankruptcy Court for the District of Delaware. Certain senior lenders will also provide a debtor-in-possession (DIP) credit facility of $35 million as part of the reorganization, which will provide the company with sufficient working capital to continue to meet its ongoing obligations, including payments to employees and suppliers throughout the reorganization process.

According to bankruptcy court documents, Barclays Bank PLC, as agent for the lender group, will provide the DIP financing. The court documents show that Barclays Bank, is collateral agent under a $185 million senior secured credit facility, tranche B term loan and a $20 million senior secured revolver.

Contec said it 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 facilitate a rapid exit from reorganization.

“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. “No jobs are expected to be impacted by this reorganization process, and we believe Contec will emerge from this process in an even stronger position to grow our business.”

Previously on abfjournal.com:

WSJ: Bain Capital Cable-Box Company Preparing to File, Tuesday, August 28, 2012