Filing Alert: TPx Communications Chapter 11

Update (Jun. 29, 2026): A comprehensive case summary is now available for the Chapter 11 bankruptcy filing of U.S. TelePacific Corp.

U.S. TelePacific Corp. (dba TPx Communications) and its debtor affiliates⁽¹⁾, an Austin, TX-based provider of managed IT, unified communications, and cybersecurity services, filed for Chapter 11 protection on Jun. 28 in the U.S. Bankruptcy Court for the Southern District of Texas.

The company attributes its distress to a persistent imbalance between an overleveraged capital structure and its operating revenue rather than to operational underperformance, having continued to generate positive adjusted EBITDA following out-of-court restructurings completed in 2022 and 2023. Revenue growth and scale had not reached a level sufficient to service the company’s funded debt while maintaining the minimum liquidity required to fund working capital, capital expenditures, and lease obligations. Entering 2025, the company identified approximately $300 million of funded debt maturities coming due in 2026, alongside a cluster of near-term liquidity events—including the November 2025 maturity of its Revolving Credit Facility, a fourth-quarter payment tied to unutilized fiber leases, and a December 2025 cash interest payment under the First Lien Term Loan Facility.

To preserve liquidity and create runway for negotiations, the company secured a series of forbearance agreements beginning Oct. 31, 2025 from lender supermajorities under its First, Second, and Third Lien facilities—including forbearance related to the December 2025 cash interest payment, with later forbearance also covering the March 2026 cash interest payment—and, on March 18, 2026, a $20 million superpriority bridge term loan carrying a 1.75x MOIC from the Ad Hoc Group and Tango Private Holdings II, LLC, the company’s sole direct equity holder and Consenting Investor. In parallel, the company and investment banker PJT Partners launched a prepetition marketing and sale process on Dec. 4, 2025, contacting 65 potential buyers, of which 33 executed NDAs; the process yielded nine bids, none on terms sufficiently actionable to proceed prepetition.

The filing implements a dual-track restructuring pursuant to a Restructuring Support Agreement, most recently amended June 28, 2026, supported by the Consenting Investor, 100% of the company’s superpriority lenders, approximately 98% of its first lien lenders, 100% of its second lien lenders, approximately 88% of its third lien lenders, and 100% of its accounts receivable purchasers. Under the dual-track, the debtors will continue the court-supervised marketing process and pursue a value-maximizing section 363 sale to the highest or best bidder if one or more actionable bids satisfy the minimum bid requirements; absent such bids, the debtors will pursue a recapitalization with certain existing lenders and the Consenting Investor through a Chapter 11 plan of reorganization. The recapitalization would deleverage the balance sheet by approximately $1 billion—from roughly $1.1 billion of funded debt to approximately $129 million—through equitization or cash payment of remaining first lien and revolving claims, conversion of second lien claims into warrants, and new preferred equity commitments.

To fund the cases, the debtors secured interim approval for a $73.5 million senior secured, priming DIP facility from participating First Lien lenders, including the Consenting Investor in its capacity as a first lien lender, and backstopped by certain members of the Ad Hoc Group. The facility comprises $20 million in new-money loans—split between a $10 million initial draw and a $10 million second draw conditioned on entry of the final order—and a $53.5 million cashless roll-up of prepetition superpriority and first lien obligations. It is priced at Adjusted Term SOFR plus 11.00% on the new money, carries a 1.25x MOIC repayment premium on the new-money advances, and matures December 31, 2026, subject to up to three successive three-month extensions.

U.S. TelePacific Corp. reports $100 million to $500 million in assets and $1 billion to $10 billion in liabilities. The filing indicates that there will be funds available for distribution to unsecured creditors. The case number is 26-90625.

⁽¹⁾ For a complete list of debtor entities, see the Chapter 11 Debtors table.

Chapter 11 Debtors

Top Unsecured Claims

Key Parties

General Bankruptcy Counsel:

• Duston K. McFaul
  Sidley Austin LLP
  Email: dmcfaul@sidley.com

Financial Advisor / CRO:

• Triple P TRS, LLC (Steven Shenker)

Investment Banker:

• PJT Partners, Inc.

Special Counsel:

• Katten Muchin Rosenman LLP

Claims Agent:

• Kroll Restructuring Administration LLC

Equity Security Holders:

• U.S. TelePacific Holdings Corp. – 100% Equity Interest

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

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