DISTRESSED DAILY: QualTek Faces Liquidity Crunch as Rates Rise

Nov. 25, 2022, 1:00 PM UTC

Tightening liquidity is a growing problem for telecommunications company QualTek Services Inc. as it seeks to improve earnings and address its high debt load.

As of Oct. 1, QualTek had around $18 million available under a $130 million asset-based revolving credit facility due in July 2025 and minimal cash on hand, according to a note from Moody’s Investors Service Vice President Jiming Zou. The company is likely to need to get addition liquidity from its lenders, and has undercollateralized accounts receivables it could use, the analyst wrote.

In September, QualTek had reached an agreement with its lenders to ...

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