Custom Cable files for Chapter 11 bankruptcy

Aug. 9, 2010
“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."

Related Story:Custom cable announces new leadership

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

Sponsored Recommendations

Cat 6A Frequently Asked Questions

April 29, 2024
At CommScope we know about network change and the importance of getting it right. Conclusion Category 6A cabling and connectivity.

Revolutionize Your Network with Propel Fiber Modules

Oct. 24, 2023
Four sizes of interchangeable Propel fiber modules provide the breadth of capabilities for virtually any configuration.

Elevate Your Network with Propel High-Density Panels

Oct. 24, 2023
Propel Series Sliding Fiber Optic Panels

Constellation™ - Explore power and data products

Oct. 24, 2023
Discover the Essentials for Building Your Power and Data System!