Published: July 30, 2010
Custom Cable Industries Files for Chapter 11 Reorganization: Seeks Asset Sale through Section 363 of U.S. Bankruptcy Code
TAMPA, Fla. - (BUSINESS WIRE) - Custom Cable Industries, Inc., (http://www.customcable.com)
a leading connectivity company with national presence and global
distribution, today 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. The Company 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.
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.
About Custom Cable Industries, Inc.
Founded in 1980, Custom Cable Industries, Inc. (http://www.customcable.com)
is a leading connectivity company with national presence and global
distribution. A longtime partner with Fortune 500 companies, Custom
Cable offers an impressive line of central office, custom,
standards-based and network cables and has best in class certification
in manufacturing and installation connectivity services including
structured cabling, network, voice and data solutions.
For Custom Cable Industries, Inc.
RFB Communications Group
Suzie
Boland, 813-259-0345
sboland@rfbcommunications.com
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