WSJ: Bain Capital Cable-Box Company Preparing to File
The Wall Street Journal reported, citing people familiar with the matter, that Contec Holdings, a cable-box repair company owned by Bain Capital, is preparing to file a prepackaged bankruptcy plan as early as this week.
The Journal said the restructuring agreement will wipe out Bain’s investment, which the firm has already written down to zero, and hand Contec to lenders. Under the plan, Contec will eliminate more than $300 million of debt, the Journal noted.
In a statement, Bain said: “While the market leader in its industry, Contec’s financial performance was impacted significantly by a dramatic slowdown in cable subscribers due to the recession, technology shifts, and increased competition. We have supported the company through the restructuring process, which we believe will help Contec emerge in an even stronger position to grow its business.”
To read the Wall Street Journal article, click here.