OTTAWA — Canadian communications technology firm Mitel Networks says it's seeking protection from creditors in the United States in order to strike US$1.15 billion in debt from its balance sheet.
The Ottawa-based company says it is seeking Chapter 11 relief in U.S. Bankruptcy Court for the Southern District of Texas.
It expects it to be a swift, streamlined process with minimal disruption to customers, employees, vendors and partners.
Operations outside the U.S., Canada and some business segments in the United Kingdom are not included in the bankruptcy filing, and its global operations should operate normally.
Mitel says support from most of its existing lenders and US$124.5 million in new financing will help it increase liquidity so it can seize new opportunities in hybrid communications.
Chief executive Tarun Loomba says Mitel is confident the steps it's taking will make it a stronger company.
This report by The Canadian Press was first published March 10, 2025.
The Canadian Press
