Cable box company Contec restructures
SCHENECTADY A Schenectady-based cable box repair company owned by Bain Capital has completed its bankruptcy restructuring.
Contec Holdings Ltd. had filed for Chapter 11 bankruptcy protection in August as the company worked to reduce its long-term debt. The company’s plan was accepted in October by Judge Kevin J. Carey of the U.S. Bankruptcy Court for the District of Delaware and took effect Friday.
Contec’s lenders have extended a $25 million loan and $35 million in other financing as part of the reorganization, which will let it make payments to employees and suppliers. The company has reduced its debt by about $250 million through this process, according to a news release.
“Our message going forward is simple,” Wesley Hoffman, chief operating officer of Contec, said in a news release. “We are a strong company and we are getting stronger. We are closely looking at opportunities to expand our business and better serve our cable industry customers.”
Interim Chief Executive Officer Larry Young said in a statement the restructuring took place during the last 60 days and did not disrupt the company’s operations. Contec repairs more than 2 million cable set-top boxes annually and support services for over 12 million units of cable equipment annually. Only administrative work is done in Schenectady; the actual repairs are done elsewhere, including a large facility Contec opened in Mexico in 2009, shortly before eliminating over 100 jobs in Schenectady.
Alex DeLay, a spokeswoman for Contec Holdings, did not provide further comment about the effect of bankruptcy filing on the company’s operations in Schenectady.
At one point, Contec employed more than 200 people at its 50,000-square-foot Schenectady facility until laying off 132 workers in July 2009. The layoffs were attributed to a drop in orders and pressure from customers to reduce prices, the company said at the time. About 85 jobs were retained for personnel, information technology, engineering, human resources and other support functions.
Bain Capital, which was formerly headed by Republican presidential candidate Mitt Romney, invested in Contec in 2008. Romney left Bain Capital in early 1999.