“…Well, this could be a little bit awkward.
A company owned by Bain Capital may file for bankruptcy this week – the very week that Bain’s former CEO Mitt Romney is slated to accept the Republican nomination for president, according to the Wall Street Journal.
Bain bought Contec, a company that repairs cable equipment, in 2008, after Romney left the firm.
As part of the deal, Bain reportedly saddled Contec with about 60 percent debt -
- a relatively small level of debt compared to other leveraged buyouts -
- but it was too much for Contec to survive the financial crisis and a drop in cable subscribers.
The bankruptcy is just the latest painful chapter for the company.
Three summers ago, Contec laid off more than 100 employees – and moved production to Mexico – according to the Albany Times Union.
Romney’s tenure at Bain, and the private equity firm’s strategy of buying up companies, has been a point of controversy during the campaign -
- so news that one of Bain’s companies may be filing for bankruptcy during the Republican National Convention likely won’t help.
Bain has been criticized for pushing profitable companies into bankruptcy – and for forcing layoffs at struggling firms…”
go to source/story>>>