Cable set-top and modem repair outfit Contec Holdings Ltd. has exited Chapter 11 bankruptcy protection, completing a reorganization that cut its debt pile by $250 million and, in addition, attracted an investment of $25 million.
Bain Capital-owned Contec announced the bankruptcy exit Monday, but it became effective Friday, Nov. 2.
The Schenectady, N.Y.-based company filed for Chapter 11 on Aug. 29 with debts of more than $360 million. A Delaware court approved Contec's bankruptcy plan in early October. Most of its 2,300 employees are based in Mexico.
Why this matters
The swift exit from bankruptcy should give peace of mind to operators and vendors that rely on Contec's services. The company repairs more than 2 million cable boxes per year, including devices made by Motorola Mobility, Cisco Systems Inc., Pace plc, Arris Group Inc. and Samsung Corp.
With Chapter 11 behind it, Contec can now focus on other moneymaking initiatives, including QuickTest, a platform that can test more than 100 devices per hour, streamline the repair process and conduct preventative maintenance so devices that are nearing failure can be identified. Contec has signed Charter Communications Inc. as an early QuickTest customer and has contract talks under way with several other cable operators, company officials told Light Reading Cable at last month's Society of Cable Telecommunications Engineers (SCTE) Cable-Tec Expo in Orlando. (See Contec Puts Set-Tops to the Test.)
â€” Jeff Baumgartner, Site Editor, Light Reading Cable