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Bain-owned Schenectady cable-box company files for bankruptcy

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— A cable-box repair company owned by the private equity firm Bain Capital is filing for bankruptcy protection but says no jobs will be impacted.

Contec Holdings Ltd. said Thursday it will continue to operate as usual during its Chapter 11 reorganization. The Schenectady-based company expects to complete the process and reduce long-term debt within 60 days.

The company's reorganization plan was filed in the U.S. Bankruptcy Court for the District of Delaware. It said that lenders have agreed to provide a $25 million credit facility and $35 million in debtor-in-possession financing as part of the reorganization, which will let it make payments to employees and suppliers.

Contec employed 85 workers in the Schenectady office after it ended production at its 50,000-square-foot Schenectady facility and laid off 132 workers in July 2009. The job losses were the result of pricing pressures from customers and a drop in orders, the company said at the time.

The 85 workers retained were for personnel, information technology, engineering, human resources and other support functions. That number is believed to be unchanged.

A spokeswoman for Contec declined to comment on the filing to The Daily Gazette on Thursday. A representative of Bain Capital did not immediately return a call to The Associated Press.

Bain invested in Contec, which repairs more than 2 million cable set top boxes a year, in 2008.

Republican presidential candidate Mitt Romney was picked to head Bain Capital in 1984, after the firm was spun off from Bain & Co. Romney left Bain Capital in 1999.

During his campaign, Romney has pointed to his success at Bain as proof of his business acumen and leadership ability. The Obama campaign has accused Romney of being a job destroyer because of the factories that Bain closed and the jobs it moved overseas.

Romney has said he left Bain in early 1999, shortly before the firm invested in companies that were pioneers of job outsourcing. Romney says he played no role in those transactions and decisions.

Representatives for Contec Holdings and Bain Capital did not immediately return calls for comment.

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comments

albright1
August 30, 2012
3:32 p.m.

[ Flag Post ]

Why would Mitt Romney even be mentioned in this article? He left Bain Capital in 1999. Nine years before Bain Capital acquired Contec Holdings.

leptonjim
August 30, 2012
4:05 p.m.

[ Flag Post ]

Because it gives the liberal press another chance for a shot.

jwhitin1
August 30, 2012
4:47 p.m.

[ Flag Post ]

President Obama's roots have been traced, and questioned beyond all reason, all the way back to his birth. Why shouldn't Mitt Romney be mentioned? Clue? Please?

Starman
August 30, 2012
5:07 p.m.

[ Flag Post ]

The fact is, while CLAIMS he left the Company in 1999, he was still very active as CEO/President until 2005.
Documents filed with SEC with his signature have been located to prove this.
No doubt in many peoples mind that he is a habitual liar.

albright1
August 30, 2012
5:55 p.m.

[ Flag Post ]

jwhitin1 and Starman,

What about the Koch Brothers too?!?!? I bet they are the ones behind this Contec Holdings Ltd Chapter 11 filing!! Denying women their constitutional right to free set top boxes and cable TV.

dlittlecook
August 30, 2012
6:51 p.m.

[ Flag Post ]

Starman,

The fact is, he did leave Bain in 1999 as an active CEO/President. It took three years ( until 2002 not 2005) before his name was removed, due to government regulations. Still, even if your facts were correct, he had nothing to do with Bain in 2008 which still leaves the question, why was he even mentioned?

hodgkins.t
September 2, 2012
7:54 p.m.

[ Flag Post ]

they did not treat their employees well. i had a friend who loyally worked fixing cable boxes for them for years and they never gave him any decent raises or benefits.

Starman
September 2, 2012
9:25 p.m.

[ Flag Post ]

Does not matter what year he left. Romney is a snake in the grass and was indeed a active partner until he left 2002. Not as a CEO, but he signed papers which makes him an active partner.
Why won't he show his tax returns for the last 5 years? Its because he hiding the fact that he sent his money to the Cayman Island to avoid paying income taxes.He is being checked out for possible illegal conversion of fees.

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