Contec Holdings, Bain-Owned Firm, Could File For Bankruptcy As Early As This Week
Well, this could be a little bit awkward.
A company owned by Bain Capital may file for bankruptcy this week, the very week that Bain’s former CEO Mitt Romney is slated to accept the Republican nomination for president, according to the Wall Street Journal.
Bain bought Contec, a company that repairs cable equipment, in 2008, after Romney left the firm. As part of the deal, Bain reportedly saddled Contec with about 60 percent debt -- a relatively small level of debt compared to other leveraged buyouts -- but it was too much for Contec to survive the financial crisis and a drop in cable subscribers.
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