We are advising an ad hoc group of lenders in connection with the proceedings

Davis Polk is advising an ad hoc group of lenders in connection with TPx’s chapter 11 filing in the U.S. Bankruptcy Court for the Southern District of Texas. On June 28, 2026, holders of approximately 98% of TPx’s funded debt claims entered into a restructuring support agreement (RSA) in connection with the chapter 11 filing.

TPx filed a prearranged plan of reorganization that will reduce TPx’s funded indebtedness by approximately $1 billion. The members of the ad hoc group have committed to provide TPx with a debtor-in-possession financing facility in an aggregate amount of $73.5 million, consisting of $20 million in new money senior secured superpriority term loans, and approximately $53.5 million roll-up of outstanding term loans under TPx’s prepetition bridge facility and prepetition first-lien term loan facility. At the first-day hearing, Judge Alfredo Perez approved the interim debtor-in-possession order and other first-day relief.

TPx’s proposed plan of reorganization provides for a dual-tracked process, including a court-supervised marketing process to consummate a section 363 sale and a toggle to a lender-supported recapitalization transaction if the sale process does not produce any qualifying bids. The recapitalization transaction, as set out in the RSA, contemplates a new first-lien exit facility in an aggregate amount of approximately $54.1 million, payment in full in cash of certain elected claims rolled under the debtor-in-possession facility and new preferred equity interests, consisting of up to $64.7 million in tranche A preferred equity interests and $9.8 million in tranche B preferred equity interests.

TPx is a leading nationwide managed service provider for cybersecurity, networks and cloud communications that reduce risk and maximize the value of IT investments, serving approximately 11,000 customers across all 50 states.

The Davis Polk restructuring team includes partners Damian S. Schaible and Natasha Tsiouris, counsel Michael Pera and David Kratzer and associates Kyle Kreider, Naomi R. Philhower, Daniel Tublin and Olive Monye. The finance team includes partner Jon Finelli and associates Christopher Martin and Benjamin J. Carlin. Partner Corey M. Goodman is providing tax advice. All members of the Davis Polk team are based in the New York office.

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