Contec Completes Restructuring Process and Emerges From Chapter 11 With Lower Debt and Solid Platform for Growth
SCHENECTADY, N.Y., Nov. 5, 2012 (GLOBE NEWSWIRE) -- Contec Holdings, LTD, ("Contec" or the "Company") the market leader in repair and refurbishment of customer premise equipment for the cable industry, today announced that it has successfully completed its restructuring and has emerged from chapter 11 effective November 2, 2012, with significantly reduced long term debt and incremental liquidity.
"We entered into this court process with a specific set of goals. Most importantly, continuing to serve our customers on an uninterrupted basis while we restructured our debt," said Larry Young, Interim Chief Executive Officer of Contec. "In an extremely short period of time, we were able to reduce our long term debt and position Contec for expansion over the coming years," continued Young. "All of this, in approximately 60 days, without impacting the relationships we have with our customers, vendors or employees. Contec has a lot to be proud of and on behalf of our management team, we'd like to thank our dedicated employees for helping to make this a seamless process."
Through the Plan, the Company reduced the debt on their balance sheet by approximately $250 million and obtained an incremental $25 million in financing.
"Our message going forward is simple," said Wesley Hoffman, Chief Operating Officer of Contec. "We are strong company and we are getting stronger. We are closely looking at opportunities to expand our business and better serve our cable industry customers."
On August 29, 2012, the Company entered chapter 11 by filing a pre-packaged plan of reorganization in the U.S. Bankruptcy Court for the District of Delaware. The Honorable Kevin J. Carey of the U.S. Bankruptcy Court for the District of Delaware confirmed the Company's Plan of Reorganization (the "Plan") on October 4, 2012. The Plan became effective on November 2, 2012.
Additional information about Contec's restructuring is available at www.contecinfo.com or through the Contec's restructuring hotline at 1.888.369.8912. All media inquiries should be directed to the media hotline at 1.972.764.2105.
Contec is the market leader in the repair and refurbishment of customer premise equipment for the cable industry. The Company repairs over 2 million cable set top boxes annually, while also providing logistical support services for over 12 million units of cable equipment annually. Contec is headquartered in Schenectady, NY. Learn more at www.gocontec.com/Home.aspx.