Enters into Restructuring Support Agreement to eliminate $529 million of prepetition debt

Files voluntary petitions for pre-packaged chapter 11 cases to implement restructuring transactions

Global operations expected to continue without interruption during chapter 11 cases

CUPERTINO, Calif.: Mobileum Inc. and certain of its U.S.-based affiliates (collectively, “Mobileum” or the “Company”), a leading global provider of analytics and network solutions, today announced that it has entered into a Restructuring Support Agreement (“RSA”) and filed voluntary petitions for consensual pre-packaged chapter 11 cases in the U.S. Bankruptcy Court for the Southern District of Texas (“the Court”) to complete the restructuring contemplated by the RSA. The financial restructuring, which has the full support of its key financial partners, will strengthen Mobileum’s financial foundation, significantly deleverage its capital structure, and provide the Company with $60 million of new money through a DIP-to-exit facility, enabling it to advance its ongoing strategic initiatives and continue to serve its global customers at the highest levels.

“Today’s announcement is an important step forward that will position Mobileum to continue as a leading provider for the telecom industry for the long-term,” said Mike Salfity, Chief Executive Officer of Mobileum. “With a strengthened balance sheet and the committed support of our financial partners, Mobileum will be equipped with the financial flexibility to build for the future and continue driving value for our customers through our suite of category-defining analytics solutions. Importantly, we expect complete continuity during this process, and for our customers to maintain uninterrupted access to Mobileum’s mission critical products and services.”

The Restructuring Support Agreement has been agreed to by approximately 88% of the Company’s first lien lenders, the Company’s first lien noteholder, and 77% of the Company’s second lien lenders, as well as affiliates of H.I.G. Capital owning a majority of the Company’s equity. Through the RSA and related restructuring transactions, Mobileum is expected to eliminate $529 million of prepetition debt and substantially reduce its interest expense burden, positioning the Company for sustainable, long-term growth and allowing Mobileum to continue to capitalize on long-term 5G and IoT tailwinds. Mobileum expects to swiftly complete its financial restructuring and emerge from chapter 11 within 60 days.

Additional Information About the Financial Restructuring

Global operations are expected to continue without interruption during the chapter 11 cases, including complete continuity of all telecommunications products and services. Today’s filings did not include any of Mobileum’s non-U.S. subsidiaries, and the Company’s international operations are not part of the court-supervised restructuring process. Additionally, the RSA contemplates that trade vendors and suppliers will be paid in full under normal terms for goods and services provided on or after the filing date.

To fund operations without disruption during the chapter 11 cases, Mobileum has secured $60 million of debtor-in-possession (“DIP”) financing from an ad hoc group of the Company’s first lien lenders. A subset of the Company’s consenting first lien lenders have also agreed to backstop the full amount of the DIP. Following Court approval, the Company expects this financing to provide the necessary liquidity to continue operations in the ordinary course during the chapter 11 process.

Additional information regarding Mobileum’s chapter 11 process is available at https://cases.ra.kroll.com/Mobileum. Stakeholders with questions may call the Company’s Claims Agent, Kroll Restructuring Administration, at 844-712-2239 or 646-777-2539 if calling from outside the U.S. or Canada, or email at MobileumIssuerServices@is.kroll.com.

Advisors

Weil, Gotshal & Manges LLP is serving as legal counsel, Evercore is serving as investment banker, FTI Consulting is serving as financial advisor, and C Street Advisory Group is serving as strategic communications advisor.

About Mobileum

Mobileum is a leading provider of Telecom analytics solutions for roaming, core network, security, risk management, domestic and international connectivity testing, and customer intelligence. Mobileum serves a global flagship customer base, who rely on its solutions to connect deep network and operational intelligence with real-time actions that increase revenue, improve customer experience, and reduce costs. Headquartered in Silicon Valley, Mobileum has global offices in countries including Germany, Greece, India, Japan, Portugal, Singapore, and United Arab Emirates.

Learn more at https://www.mobileum.com/.

Fonte: Business Wire