Pareteum nixes auction, names stalking horse bidder winner for assets

By Sarah Lizee

Olympia, Wash., June 14 – Pareteum Corp. canceled an auction for its assets and designated the stalking horse bid the winning bid after receiving no other qualified bids by the deadline, according to a notice filed with the U.S. Bankruptcy Court for the Southern District of New York.

As previously reported, Circles MVNE Pte. Ltd. has combined with Channel Ventures Group, LLC for a stalking horse asset purchase agreement for substantially all of the assets of the company.

Circles has agreed to acquire the company’s mobile virtual network enabler business and associated contracts, and Channel Ventures has agreed to acquire the company’s mobile virtual network operator, interactive digital media, iPass, and small and medium business enterprise businesses and associated contracts.

Consideration for the sale is a credit bid against about $60 million in secured claims under prepetition loans and proposed debtor-in-possession loan held by the stalking horse bidders.

The stalking horse agreement included a $1.5 million expense reimbursement and a 1.9% breakup fee. While the court approved the expense reimbursement, the breakup fee was not approved.

A sale hearing will take place on June 23.

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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