QualTek’s Plan of Reorganization Confirmed
Plan of Reorganization Eliminates Approximately Half of Company’s Prepetition Debt
Company to Emerge Positioned to Continue Best-in-Class Infrastructure Service
Emergence from Financial Restructuring Process Expected in Mid-July
BLUE BELL, Pa.–(BUSINESS WIRE)–QualTek Services Inc. (the “Company” or “QualTek”), a leading infrastructure services provider, today announced that its Plan of Reorganization (the “Plan”) has been confirmed by the United States Bankruptcy Court for the Southern District of Texas (“the Court”). The Plan has the overwhelming support of the Company’s major stakeholders, including, 100% of voting Secured Debt Holders and 100% of voting Convertible Noteholders. This milestone comes less than six weeks after filing, representing an expeditious step forward toward emergence from the Company’s Chapter 11 cases, which it expects to occur in mid-July.
As a result of its restructuring efforts, QualTek will emerge from Chapter 11 with a significantly stronger balance sheet and be positioned for continued industry leadership in the telecommunications and utilities sectors. Through the confirmed Plan, QualTek will eliminate $307 million of debt. The Company also intends to enter into new $25 million exit term loan financing (in addition to the $40 million previously funded DIP financing) and an ABL facility with $101.2 million in availability to ensure that it is well capitalized in the future.
“With today’s announcement, QualTek is poised to emerge from our financial restructuring well positioned to continue to provide best-in-class infrastructure services for our valued customers,” said QualTek’s Chief Executive Officer Scott Hisey. “We believe QualTek will have significant opportunities in the coming years across the wireless, wireline/fiber, 5G, renewables and recovery sectors, and are excited to enter this next chapter for our company. I want to thank our customers and vendors for their continued support during this process as we position our business on a more stable foundation. I also want to express my appreciation to our employees for their hard work and focus on delivering exceptional results, and we look forward to building on our track record as a dedicated employer of our military veterans.”
QualTek will emerge as a private company under the ownership of their prepetition lenders. The current management team will continue to lead the Company, with roles and responsibilities across the team remaining the same. The Plan also provides for general unsecured creditors and trade claims to be unimpaired.
Additional information about the Company’s financial restructuring is available on the website of its claims agent, Epiq, at https://dm.epiq11.com/QualTek. With questions, stakeholders can contact Epiq at (877) 609-4009 Toll Free or +1 (503) 447-4703 from outside the U.S. or Canada, or by emailing QualTek@epiqglobal.com.
Advisors
Kirkland & Ellis LLP and Jackson Walker LLP are serving as legal counsel, Jefferies is serving as investment banker, and Alvarez & Marsal is serving as financial advisor to the Company. The Company has retained C Street Advisory Group to serve as the strategy and communications advisor.
About QualTek
Founded in 2012, QualTek is a leading technology-driven provider of infrastructure services to the 5G wireless, telecom, power grid modernization and renewable energy sectors across North America. QualTek has a national footprint with more than 65 operation centers across the U.S. and a workforce of over 5,000 people. QualTek has established a nationwide operating network to enable quick responses to customer demands as well as proprietary technology infrastructure for advanced reporting and invoicing. The Company reports within two operating segments: Telecommunications, and Renewables and Recovery and has already become a leader in providing disaster recovery logistics and services for electric utilities. For more information, please visit https://www.qualtekservices.com.
Forward Looking Statements
This press release includes “forward-looking statements” for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are statements other than statements of historical fact. They include statements regarding QualTek’s current expectations, management’s outlook guidance or forecasts of future events, projected cash flow and liquidity, its ability to enhance cash flow and financial flexibility, and the assumptions on which such statements are based. The forward-looking statements are based on the current expectations of the management of QualTek and are inherently subject to uncertainties and changes in circumstances and their potential effects and speak only as of the date of such statement. There can be no assurance that future developments will be those that have been anticipated. These forward-looking statements involve a number of risks, uncertainties or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those discussed and identified in public filings made with the SEC. QualTek undertakes no obligation to release publicly any revisions to any forward-looking statements, to report events or to report the occurrence of unanticipated events.
Contacts
Media & Investor Relations
C Street Advisory Group
