Mitel Networks Corporation has successfully completed its financial restructuring to position the business for sustainable, long-term success.
As a result, Mitel has a significantly stronger balance sheet and capital structure, well-positioned to optimise its global operations and drive profitable and efficient growth.
The company announced in April that it had received approval for its restructuring plan from the US Bankruptcy Court for the Southern District of Texas.
Through this process, the company has reduced its debt by approximately $1.15 billion, reduced annual cash interest payments by approximately $135 million and raised approximately $125 million of new funding in aggregate to support its go-forward operations.
These improvements have enhanced Mitel’s financial flexibility and better enable the company to execute its strategic priorities while continuing to meet customers’ needs.
This concludes the final phase of Mitel’s proactive efforts to right-size its capital structure. With a fortified balance sheet and the fact that 92 per cent of organisations are prioritising hybrid, Mitel’s strategy is focused on delivering hybrid innovation and AI capabilities that meet the rising enterprise demand.
Serving more than 70 million users in more than 100 countries, Mitel will continue to drive innovation that delivers value to customers as they maximise the value of existing investments, adopt emerging technologies such as AI and address specialised requirements in demanding industries and geographies through a hybrid communications strategy.
“Today marks a fresh start for Mitel,” said Tarun Loomba, president and chief executive officer of Mitel. “With the weight of legacy debt lifted, we are focused on accelerating our hybrid communications leadership. We have a portfolio designed to provide enterprise customers with secure, reliable and modern communications solutions, and a strong financial position that will take us well into the future.
“We are excited to continue expanding workforce communications experiences and enhancements to vertical solutions for frontline workers, Mitel CX and our jointly developed hybrid solution with Zoom throughout the year. We appreciate the continued trust of our employees, customers, partners and vendors throughout this process, and look forward to continuing to lead the way in unified hybrid communications for years to come.”
Janine Yetter, Mitel chief financial officer, said, “As we completed this process swiftly and decisively, the business maintained momentum that is reflected in a strong year-over-year Q1 performance. Our Q1 results remained consistent with notable year-over-year growth in Germany and solid gains in UC and contact centre revenue.
“Our healthier balance sheet is now appropriately aligned to an organisation of our size and our Q1 performance positions us well to accelerate the execution of our strategic plan with a continued focus on delivering flexible, secure and mission-critical hybrid communications solutions.”
Mitel user group board president, Cas Rangel, said, “Today marks a new chapter for Mitel and with it, a renewed sense of optimism for the future of telecommunications. Emerging from restructuring is never a simple journey — but it’s a clear signal of strength, focus and forward momentum. I believe customers can expect a stronger, more agile and more responsive partner that’s better positioned to innovate, support and deliver lasting value.”