Contec Holdings Ltd., a cable-box repair company owned by Bain Capital, is preparing to file for bankruptcy protection as soon as this week, the Wall Street Journal reported today. Contec is expected to file a pre-packaged bankruptcy, in which creditors bless a restructuring plan ahead of time and thereby limit the company's stay in court proceedings. Bain, a Boston-based investment firm, acquired Contec from another buyout shop in 2008. The restructuring agreement will wipe out Bain's investment, which the firm has already written down to zero, and hand Contec to lenders. Contec will eliminate more than $300 million of debt under the bankruptcy plan.
