Filing Alert: Mitel Chapter 11

MLN US HoldCo LLC (dba Mitel) and its debtor affiliates⁽¹⁾, a global leader in business communications, filed for Chapter 11 protection on Mar. 9 in the U.S. Bankruptcy Court for the Southern District of Texas to implement a prepackaged restructuring plan backed by an ad hoc group of senior lenders, certain junior lenders, and other key stakeholders. The plan aims to reduce the company’s balance sheet debt by approximately $1.15 billion and cut annual cash interest expense by about $135 million.

Mitel, which provides cloud, enterprise, and next-generation collaboration solutions, says right-sizing its capital structure will position the company for sustainable growth while continuing to serve more than 70 million users across 100+ countries. The company has secured commitments for $60 million in new money DIP financing from certain supporting lenders, which, along with existing working capital, will provide liquidity through the restructuring process. Additionally, Mitel has lined up $64.5 million in exit financing upon consummation of the plan.

The company’s operations outside of the U.S., Canada, and select business segments in the U.K. are not included in the filing.

The company reports $1 billion to $10 billion in both assets and liabilities. The filing indicates that there will be funds available for distribution to unsecured creditors. The case number is 25-90090.

⁽¹⁾ A list of the Debtors is provided in the Affiliated Debtors table below.

Affiliated Debtors

Top Unsecured Claims

Key Parties

Counsel:

• John F. Higgins
• Porter Hedges LLP
• Email: jhiggins@porterhedges.com

Co-Counsel:

• Paul, Weiss, Rifkind, Wharton & Garrison LLP

Canadian Counsel:

• Goodmans LLP

Investment Banker:

• PJT Partners LP

Financial Advisor:

• FTI Consulting, Inc.

Claims Agent:

• Stretto, Inc.

Signatories:

• Janine Yetter – Authorized Signatory

Equity Security Holders:

• MLN US TopCo Inc. – 100.0% Equity Interest

Bondoro Insights is continuing to monitor this case and will provide further coverage as appropriate.

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