On May 15, 2022, Togut, Segal & Segal LLP, as lead bankruptcy counsel, and King & Spalding LLP, as special corporate and finance counsel, filed Pareteum Corporation and certain of its affiliates for chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York. Pareteum is a publicly held, leading edge, global provider of mobile networking software solutions and services for communications service providers and enterprise retail customers. The Debtors have operations in North America, Latin America, Europe, the Middle East, Africa, and the Asia-Pacific region.
The Debtors are pursuing a sale of substantially all of their assets under section 363 of the Bankruptcy Code. The chapter 11 cases are supported by the Debtors’ prepetition secured lenders, which are providing up to $6 million of new money as postpetition debtor in possession (“DIP”) financing and have also submitted a stalking horse bid in connection with the sale. The stalking horse bid is valued at more than $60 million, including assumed liabilities. The bid will be subject to higher and better offers pursuant to an auction and marketing process overseen by the Bankruptcy Court.
The Togut Firm has substantial recent experience with section 363 sale processes. In 2021, the Firm filed Greensill Capital, Inc., the U.S. subsidiary of the global Greensill supply chain finance enterprise, and consummated a section 363 sale of the debtor’s wholly-owned subsidiary, Finacity Corporation. In 2020, the firm filed Rubie’s Costume Company, Inc. and its affiliated debtors, a 65-year-old family-owned company and the world’s largest designers, manufacturers, and distributors of costumes and related accessories. The Togut Firm, along with co-counsel Meyer, Suozzi, English & Klein, P.C., assisted Rubie’s with consummating a section 363 sale for substantially all of their assets. The firm also currently serves as counsel for JPA No. 111 Co., Ltd. and JPA No. 49 Co., Ltd., owners of two Airbus A350-941 aircraft, which filed for chapter 11 bankruptcy protection in December 2021 and obtained Bankruptcy Court approval for the sale of substantially all of their assets in March 2022.