QualTek Services, an infrastructure services provider, emerged from Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of Texas following the confirmation of its plan of reorganization on June 30, 2023.
“We are very pleased by our swift and successful emergence, which represents the confidence of our stakeholders in our long-term strategy and the future of our Company,” Scott Hisey, CEO of QualTek, said. “We are entering into our next chapter with strong financial footing and the resources necessary to focus on our core mission of providing quality, world-class infrastructure services to our client partners across the telecommunications and utilities industries. I am grateful to our employees, including our many veterans, customers, and partners for their support during this process and look forward to QualTek’s bright future.”
The plan was supported by all major credit stakeholders, including 100% of voting secured debt holders and 100% of voting convertible noteholders. Through its financial restructuring, the company reduced its debt by approximately $307 million, entered into a $101 million exit ABL facility and received $25 million of new money exit term loans.
Following emergence, QualTek will operate as a privately-held company under the ownership of its prepetition lenders and management. Equity shares of the pre-emergence company have been canceled and are no longer publicly trading. The company will be led by the existing management team alongside a newly formed board of directors.
Kirkland & Ellis and Jackson Walker served as legal counsel, Jefferies served as investment banker, and Alvarez & Marsal served as financial advisor to the company. C Street Advisory Group served as the strategy and communications advisor to the company. The plan was supported by an ad hoc group of term lenders represented by Paul, Weiss, Rifkind, Wharton & Garrison, as counsel, Houlihan Lokey Capital, as investment banker and Accordion Partners as financial advisor. The plan was also supported by Fortress Investment Group, represented by Davis Polk & Wardwell as counsel and Solomon Partners as financial advisor.