Custom Cable files for Chapter 11 bankruptcy
“Custom Cable is a good company with a poor balance sheet but improving business operations,” says Gregg Stewart, the network structured cabling provider's general manager and chief restructuring officer.
TAMPA, Fla. -- Custom Cable Industries, Inc. , a supplier of network structured cabling and connectivity products and services, announced that it has filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code to reorganize and implement a balance sheet restructuring. The filing was made in the U.S. Bankruptcy Court for the Middle District of Florida, Tampa Division.
All day to day operations and business of Custom Cable will continue as usual, said the company in a press release. The company, which has a national presence and global distribution capabilites, has the requisite funding in hand to operate in Chapter 11.
“Custom Cable is a good company with a poor balance sheet but improving business operations,” says Gregg Stewart, general manager and chief restructuring officer. “This action is being taken to restructure the company’s balance sheet and allow for a fresh capital infusion."
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Stewart continued, "Management believes a new owner and the resultant capital infusion would allow the company to continue its trend of positive operating results, allowing it to resume sustainable and profitable growth. We appreciate the support we have received to date from our long time customers and suppliers, and look forward to continuing these valued relationships.”
Despite upward trends in operations during 2010, Custom Cable has faced issues with its significant debt level and continued litigation claims from former executives and its senior lender. The decision to pursue Chapter 11 reorganization was made by a special committee of the company’s board of directors, whose members determined that the best course of action was to seek an asset sale of the company through Section 363 of the U.S. Bankruptcy Code.
Custom Cable has retained Berenfeld Capital Markets, LLC to solicit prospective purchasers. An affiliate of ComVest Capital LLC, Custom Cable’s senior lender and majority shareholder, has expressed its willingness to purchase Custom Cable, which was founded in 1980.
More info: http://www.customcable.com