Contec files for bankruptcy

New York: Contec Holdings, the cable-box repair company owned by Bain Capital LLC, sought bankruptcy protection from creditors.

Contec Holdings, based in Schenectady, New York, listed debt of as much as $500 million (Dh1.83 billion) and assets of as much as $100 million in Chapter 11 documents filed on Wednesday in a US Bankruptcy Court in Wilmington, Delaware.

“This reorganisation process will allow Contec to invest in and enhance our capabilities to serve our cable industry customers,” Wes Hoffman, Contec chief operating officer, said in a statement on Wednesday.

Bain acquired Contec in 2008 from American Capital, 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.

Bain, a Boston-based private equity firm that manages $65 billion in assets, has invested in companies such as Toys “R” Us and Dunkin’ Brands Group.

US Republican presidential nominee Mitt Romney co-founded Bain in 1984. Romney left Bain in 1999 to oversee the Salt Lake City Olympics and served as governor of Massachusetts from 2003 to 2007.

CHL, Contec LLC, Contec Licenses LLC, WorldWide Digital Company LLC, Contec de Mexico, S. de R.L. de C.V., Ensambladora de Matamoros S. de R.L. de C.V., and Contec Acquisition Corp. also sought protection.