Mitel, a global business communications provider, has filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of Texas. This strategic move aims to optimize the company’s capital structure, reduce its debt by approximately $1.15 billion, and decrease annual cash interest expenses by about $135 million.
The company has secured $60 million in debtor-in-possession financing to support operations during the restructuring process and an additional commitment of $64.5 million in exit financing to bolster future operations. Mitel’s operations outside the U.S., Canada, and select U.K. business segments are not included in the filing, allowing its global business to continue functioning as usual.
CEO Tarun Loomba expressed confidence that these steps will strengthen Mitel, enabling it to invest in long-term strategies and continue supporting customers and partners with innovative solutions. This restructuring is expected to be swift and minimally disruptive, with Mitel maintaining regular operations and fulfilling commitments to stakeholders throughout the process. Read more at UC Today.