(Reuters) – Telecommunications and power contractor QualTek Services said on Friday that it has emerged from bankruptcy after it reduced its debt by about $307 million through a restructuring deal.
QualTek filed for bankruptcy in May this year armed with a restructuring agreement to cut its debt and provide $40 million of new loans to fund its post-bankruptcy operations.
The telecom company will operate as a privately-held company under the ownership of its lenders and management. Its shares are no longer publicly traded.
The company will be led by the existing management team alongside a newly-formed board.
QualTek went public through a special purposes acquisition vehicle (SPAC) deal in February 2022, just before the Federal Reserve began raising interest rates in an effort to curb inflation in the U.S. economy.
(Reporting by Lavanya Ahire in Bengaluru, editing by Deepa Babington)
