Bain-Owned Firm Files for Chapter 11

http://online.wsj.com/article/SB10000872396390444914904577621152010259394.html

Contec Holdings Ltd., the cable-box repair company owned by Bain Capital Partners, filed for Chapter 11 bankruptcy protection Wednesday with a plan in hand to restructure some $360 million in debt.

Contec's restructuring, which the company hopes to complete within the next 60 days, would wipe out such equity holders as Bain. The Wall Street Journal reported Sunday that Contec's bankruptcy filing was expected this week.

Court papers show that under Contec's restructuring plan, the company's senior lenders, owed $201 million, would take the majority of the new equity issued in the restructured company as well as $27.5 million in new second-lien term notes. Contec said certain of its senior lenders have also agreed to provide $35 million in bankruptcy funding and a $25 million bankruptcy-exit loan.