Pareteum will use the voluntary Chapter 11 process to facilitate an effective sales process and position the company for long-term success; The company will maintain operations as usual

Continues to empower enterprises, communications service providers, early-stage innovators, developers, Internet of Things (IoT) and telecommunications infrastructure providers

Get into the Chapter 11 process with $6 million of DIP funding committed

NEW YORK, May 15, 2022 /PRNewswire/ — Pareteum Corporation (OTC: TEUM) and certain affiliates (collectively, “Pareteum” or the “Company”), a global Cloud Communications-Platform-as-a-Service (CPaaS) company, today announced today that the Company filed for voluntary protection under Chapter 11 of the United States Bankruptcy Code (“Chapter 11”) in United States Bankruptcy Court for the Southern District of New York (the “Bankruptcy Court”). The Company intends to execute a strategic asset sale under Section 363 of the Bankruptcy Code while addressing legacy issues to best position the business for future success.

Prior to the filing of the Company’s Chapter 11 cases, the Company’s Board of Directors and management evaluated a wide range of strategic alternatives and implemented a strategic asset sale strategy. After a thorough marketing process to secure a “hot bidder” for a court-supervised sale process and following arm’s length negotiations, Circles MVNE Pte. (“Circles”) has partnered with Channel Ventures Group, LLC (“CVG”) to enter into a stalking horse asset purchase agreement for substantially all of the Company’s assets. Circles has agreed to acquire the company’s Mobile Virtual Network Enabler (MVNE) business and related contracts, and CVG has agreed to acquire the Mobile Virtual Network Operator (MVNO), IDM, iPass and Small and Medium Business Enterprise businesses (SMB) of the company and associated contracts. These agreements are subject to higher and better offers, among other conditions, and bankruptcy court approval.

The company plans to continue business as usual during the Chapter 11 process and complete the process quickly. To help fund and protect its operations, Pareteum has received a pledge from Circles for up to $6 million in debtor-in-possession (“DIP”) financing. Upon bankruptcy court approval, DIP financing, along with normal operating cash flow and the consensual use of cash collateral, will fund post-petition operations and costs on normal terms.

“Pareteum has faced many challenges over the past few years, particularly in light of the rising cost of capital and the COVID-19 pandemic, and has been working to address legacy issues from the business while moving forward to lay the foundation for future growth,” Bart said. Weijermars, acting CEO of Pareteum. “Despite our business challenges, our products and services that we provide to customers remain strong and relevant in this competitive industry. We look forward to using this process to position our business for sustainable future success across all of our business segments. activity. By taking the decisive and positive decisions of today’s milestone, we are confident that under new ownership, the business can be better positioned to grow and achieve the necessary scale and full potential. In the meantime, we will continue to put the needs of our customers first, and I am grateful to everyone at Pareteum who works tirelessly to provide top-notch products and services to our global customer base. I would also like to express my deepest gratitude to our valued customers. with whom we are honored to associate ourselves.

The company has filed customary petitions in the bankruptcy court seeking to allow Pareteum to maintain normal course operations, including but not limited to payment of employees and continuation of employee benefit programs. existing ones, meeting commitments to customers and meeting future obligations, including supplier payments. . Such motions are typical of the Chapter 11 process and Pareteum anticipates that they will be heard in the early days of its Chapter 11 cases.

For more information about the company’s Chapter 11 cases, including claims information, please visit www.kccllc.net/pareteum or contact KCC, the company’s notice and claims agent, at 888 -201-2205 (for USA and Canada calls) or 310-751-1839 (for chargeable international calls).

King & Spalding LLP is acting as legal advisor, FTI Capital Advisors, LLC as investment banker and FTI Consulting as restructuring advisor for Pareteum.

About Pareteum Corporation

Pareteum is a cloud software communication platform company whose mission is to connect every person and every (thing)MT. As a global communications platform-as-a-service (CPaaS) solutions provider with operations in North America, Latin America, Europe, Middle East and Africaand Asia Pacific regions, Pareteum gives enterprises, communications service providers, early-stage innovators, developers, Internet of Things (IoT) and telecommunications infrastructure providers the freedom and control to create, deliver and scale innovative communication experiences. The Pareteum platform connects people and devices around the world using the secure, ubiquitous and highly scalable solution to deliver data, voice, video, SMS/text messaging, media and content activation. For more information, visit www.pareteum.com and follow the company on LinkedIn.

Forward-looking statements

Certain statements in this release constitute “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Except for historical matters, the matters discussed in this release are forward-looking statements. We have based these forward-looking statements on our current expectations and projections regarding future events. Forward-looking statements are generally identified by words such as “believe”, “expect”, “anticipate”, “intend”, “estimate”, “plan”, “project”, “should”, “will”, “would” and other similar expressions. In addition, any statement that refers to expectations or other characterizations of future events or circumstances is a forward-looking statement. However, our actual results may differ materially from those contained or implied by these forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: risks and uncertainties associated with the integration of assets and operations that we have acquired and that we may acquire in the future; our possible inability to raise additional capital that will be needed to expand our operations; the substantial doubt about our ability to continue our activity expressed in the last report on our audited financial statements; our failure to file required periodic reports on a timely basis; our potential lack of revenue growth; the length of our sales cycle; ongoing SEC investigations and other lawsuits; the outbreak and impact of the novel coronavirus (COVID-19) on the global economy and our business, including the impact on global supply chains; risks related to market disruptions resulting from Russia invasion of Ukraine and the penalties imposed on Russia Therefore; our potential inability to add new products and services that will be necessary to generate increased sales; our potential inability to successfully develop and commercialize platforms or services or our inability to obtain adequate financing to implement or expand our business; our ability to successfully remedy the material weakness in our internal control over financial reporting within the time and in the manner currently anticipated; the effectiveness of our internal control over financial reporting, including the identification of additional control deficiencies; risks relating to restrictions and covenants in our convertible credit facility that could adversely affect our business; risks related to our current non-compliance with certain conditions of our senior secured convertible debt; our potential loss of key personnel and our ability to find qualified personnel; international, national, regional and local economic political changes, political risks and risks relating to global tariffs and import/export regulations; fluctuations in foreign currency exchange rates; our potential inability to use and protect our intellectual property; risks related to our ongoing investments in research and development, product defects or software errors, or cybersecurity threats; general economic and market conditions; regulatory risks and the potential consequences of failure to comply with applicable laws and regulations; increases in operating expenses associated with the growth of our business; risks relating to our share capital, including the potentially dilutive effect of the issuance of additional shares and the fact that shares eligible for future sale may adversely affect the market for our common stock; the possibility of changes in telecommunications rates and changes in technology; disruptions to our networks and infrastructure; the potential for increased competition and the risks of competing with major competitors that are larger than us; our positioning in the market as a small supplier; risks resulting from the restatement of certain of our financial statements; and other risks discussed in our Form 10-K for the year ended December 31, 2020. Except to the extent required by applicable law or rule, we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

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SOURCEPareteum Corporation

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