Telecom servicer QualTek enters bankruptcy to cut $307 mln debt

Telecommunications and power contractor QualTek Services Inc filed for bankruptcy on Wednesday, armed with a restructuring deal that could slash $307 million of the company’s $625 million debt.

QualTek filed for Chapter 11 protection in Houston, saying that increasing debt costs were beginning to cut into its operating budget, at a time when inflation was already causing it to pay more for labor and energy.

Rate hikes caused QualTek’s 2022 interest expense to balloon by 33% to $59.3 million, according to its court filings.