In September 2003, Palisades purchased 100% of the assets of TVC Communications’ parent company in an auction pursuant to Section 363 of the bankruptcy code. TVC is a $250+ million firm that is the nation’s largest distributor of components used in the construction of cable television systems.
TVC’s bankruptcy had followed a wrenching downturn in cable system buildouts and the insolvency of a number of cable system operators and alternative providers, including Adelphia, Worldcom and Global Crossing. However, lengthy work in the industry convinced Palisades that the distribution sector would recover, and would ultimately benefit handsomely from the retrofit of advanced services (e.g. voice-over-IP, HDTV, and broadband data) to the existing cable plant.
Under Palisades’ supervision, TVC fully recovered as a robust supplier integral to the buildout plans of most major cable system operators. In addition, TVC developed technology expertise allowing it to bring “triple play” capabilities (voice, video, Internet) to smaller cable operators requiring fully engineered solutions. These solutions also proved highly attractive to cable operators in Latin America and elsewhere, resulting in a rapidly growing international business. TVC’s logistics capability became the industry’s best with a full-scale IT overhaul in 2009. Finally, TVC brought its “full solution” offering to private video networks through the strategic acquisition of the Satellite Engineering Group.
In early 2005 Palisades negotiated a new $47 million credit facility, replacing much of the original investment capital, and the entire original invested capital had been returned by June 2006. A further cash distribution to TVC’s owners exceeding $50 million was made in June 2007, and in 2010 the company was sold to WESCO International for $246.5 million.