QualTek Services Inc, a provider of infrastructure services to renewable energy and telecommunication companies, announced on Wednesday that it has filed for bankruptcy along with more than a dozen subsidiaries.
The Pennsylvania-based company listed $689 million in assets and $790 million in liabilities, according to the court filing.
Under its Chapter 11 proposal, QualTek revealed that it hopes to cut its debt almost in half by reducing its liabilities by $307 million.
The company also proposed a $65 million debtor-in-possession facility to fund itself through bankruptcy, which will include new money funding of $40 million.
“The transactions announced today will position our company to continue providing best-in-class service to our customers, remain a dedicated employer of our military veterans, and build on our industry-respected track record,” QualTek Services CEO Scott Hisey said in a statement.
“We are entering this process with the overwhelming support of our lenders and customers, which we expect will enable us to move through this process quickly and without disruption,” he added.
QualTek said it expects the support of at least 85% of the company’s secured debt holders and about 80% of its convertible noteholders.
Contact Sean at sean@proactiveinvestors.com