Contec Holdings Ltd., the cable-box repair company owned by Bain Capital LLC, won court approval of a bankruptcy recovery plan that will shed long-term debt by about $300 million.
U.S. Bankruptcy Judge Kevin Carey approved the plan today in Wilmington, Delaware.
Under the pre-packaged plan, long-term debt will be reduced to about $52.5 million from about $350 million, if the exit financing is fully drawn, court papers show.
Contec Holdings, based in Schenectady, New York, listed debt of as much as $500 million and assets of as much as $100 million in Chapter 11 documents filed Aug. 29.
Mitt Romney, the Republican presidential nominee, co- founded Bain in 1984. Romney left Bain in 1999 to oversee the Salt Lake City Olympics. He served as governor of Massachusetts from 2003 to 2007.
Bain acquired Contec in 2008 from American Capital Ltd. (ACAS), a Bethesda, Maryland-based asset manager, which said at the time that it made $120 million from its two-year investment in Contec, including dividends and profit from the sale.
Contec, founded in 1978, repairs millions of digital cable set-top units, modems and satellite receivers each year, according to its website. It has repair plants in Schenectady, Seattle, Mexico City and Matamoros, Mexico, where it opened a 240,000-square-foot facility in January 2009.
The case is In re CHL Ltd. (CHL), 12-12437, U.S. Bankruptcy Court, District of Delaware (Wilmington).
To contact the reporter on this story: Dawn McCarty in U.S. Bankruptcy Court in Wilmington, Delaware, at firstname.lastname@example.org.