We advised an ad hoc group of secured lenders in connection with Mitel’s chapter 11 proceedings

Davis Polk advised an ad hoc group of holders of Mitel’s priority and non-priority secured debt in connection with the company’s chapter 11 restructuring. Certain members of the ad hoc group backstopped a $60 million new-money DIP financing facility to fund the chapter 11 cases, which were filed in the United States Bankruptcy Court for the Southern District of Texas on March 9 and 10, 2025.

On April 17, 2025, the Bankruptcy Court confirmed Mitel’s prepackaged plan of reorganization, approving the comprehensive restructuring supported by the ad hoc group as well as all other major case constituents. Under the terms of the consensual plan, Mitel deleveraged its balance sheet by approximately $1.15 billion and gained access to significant new capital to fund its go-forward operations through, among other things: the exchange of the DIP new money term loans into new secured exit term loans at emergence; the roll-up and equitization of an aggregate principal amount of approximately $62 million of priority lien loans held by the DIP lenders; the receipt of $64.5 million of new money exit term loans funded on the effective date; and the equitization of allowed priority lien claims and non-priority lien deficiency claims. The plan also provided for the full and final resolution and dismissal of all claims asserted in litigation proceedings brought in New York court challenging an October 2022 financing transaction undertaken by MLN TopCo Ltd. and related entities. Mitel emerged from chapter 11 on June 20, 2025.

Mitel is a global leader in business communications, providing businesses with advanced communication, collaboration and contact center solutions. Mitel is headquartered in Ottawa, Canada, with a global footprint that includes more than 70 million users in over 100 countries.

The Davis Polk restructuring team included partners Damian S. Schaible and Adam L. Shpeen, counsel Michael Pera and associates Katharine Somers, James Nirappel, Trevor D. Jones, Sijia (Scarlett) Huang and Sophie Liao. Partner Elliot Moskowitz, counsel Marc J. Tobak and associate Adam M. Greene provided litigation advice. Partners Leonard Kreynin and Will Pearce, counsel Jacob S. Kleinman and associate Sophie Vacikar Bessisso provided corporate advice. The finance team included counsel Jon Finelli and associates Christopher Martin, Linyang Wu and Benjamin J. Carlin. Partners Lucy W. Farr and Dominic Foulkes, counsel Tracy L. Matlock and Freddie Schwier and associates Yueyu Yang and David J. Beer provided tax advice. Counsel Matthew Yeowart and associates Ciara Agnew and Dylan Jones provided antitrust advice. Members of the Davis Polk team are based in the New York, Washington DC and London offices.

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