Togut, Segal & Segal LLP is pleased to announce that the transaction for the sale of Pareteum to Circles MVNE and Channel Venture Group was awarded the Americas Distressed M&A Deal of the Year for the Middle Market category at the Global M&A Networks 14th Annual Americas M&A Atlas Awards, which were held at the Metropolitan Club of New York on January 19, 2023.
The Togut Firm served as restructuring counsel to Pareteum Corporation and certain affiliates, collectively a global cloud communications platform company, in their Chapter 11 cases filed in the Bankruptcy Court for the Southern District of New York. King & Spalding LLP served as special corporate and finance counsel to the debtors,
The Togut Firm and King & Spalding assisted the Pareteum debtors in obtaining Bankruptcy Court approval in June 2022 of the sale of substantially all of the debtors’ assets on a going concern basis to stalking horse purchasers Circles MVNE Pre Ltd. (which also served as DIP financing lender) and Channel Ventures Group LLC (the former minority holder of the debtors’ first lien debt and agent and lender under an existing junior subordinated secured debt facility). As a result of the sale, which was closed on July 11, 2022, more than 1,000 contracts were assigned to the purchasers resulting in a significant reduction in claims against the debtors’ estates and substantially all of the debtors’ employees were offered positions with the purchasers. Under the chapter 11 plan, a liquidation trust will be funded by Circles and CVG in accordance with the terms of a global settlement to allow a liquidating trustee to effectively pursue certain retained causes of action on behalf of unsecured creditors (the beneficiaries of the liquidating trust) and to complete the administration of the debtors’ chapter 11 cases. The debtors’ chapter 11 plan was confirmed on October 6, 2022.
The M&A Atlas Awards honor the best value-creating transactions, outstanding firms, and leaders from the Americas and the Global Markets transactional communities. Winners of the Global M&A Networks awards are selected based on “deal criteria” and expertise.