Mitel Networks Corporation, an Ottawa-based telecommunications company under the global Mitel Group, obtained an interim stay of proceedings under the Companies' Creditors Arrangement Act (CCAA) after initiating Chapter 11 proceedings in Texas on March 10, 2025. The company, with over 65 million users across 146 countries, has faced industry and external headwinds that strained liquidity despite a 2022 transaction aimed at generating additional funds.
To address these financial challenges, Mitel entered into a restructuring support agreement with an ad hoc group of lenders. The agreement includes a reduction of more than $1.15 billion in funded debt, a decrease in annual cash interest expenses by approximately $135 million, and the resolution of the litigation concerning the prior transaction. The full recognition of the CCAA stay will be sought after First Day Orders are granted in the U.S. proceedings.
FTI Consulting has been proposed as the information officer. Legal advisors include Goodmans for Mitel, Stikeman Elliott for FTI Consulting, and Bennett Jones for the ad hoc group of lenders.
The Goodmans team includes Robert Chadwick, Caroline Descours, Andrew Harmes, Dan Dedic, and Rachel Kurtzer.