Pareteum receives interim access to $3 million of DIP financing

By Sarah Lizee

Olympia, Wash., May 18 – Pareteum Corp. received interim approval to access $3 million of a proposed $6 million of debtor-in-possession financing, according to an order filed U.S. Bankruptcy Court for the Southern District of New York on Wednesday.

Circles MVNE Pte. Ltd., a stalking horse bidder for the company’s assets, is the lender.

Interest is 9% per year, paid in kind. There is a 0.5% commitment fee, a 2% upfront fee and a 1.5% exit fee.

The facility is set to mature in 210 days from closing.

The company also received interim access to the cash collateral of its prepetition secured lenders.

Following a final order, the DIP financing will also include a rollup of up to $27.72 million of prepetition loans.

New York-based Pareteum is a cloud communications-platform-as-a-service company. The company filed bankruptcy on May 15 under Chapter 11 case number 22-10615.

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