Pareteum’s Chapter 11 plan, statement hearing set for Oct. 6

By Sarah Lizee

Olympia, Wash., Aug. 22 – Pareteum Corp.’s combined hearing on confirmation of its Chapter 11 plan of liquidation and approval of the related disclosure statement is scheduled for Oct. 6, according to a notice filed with the U.S. Bankruptcy Court for the Southern District of New York.

Objections are due by Sept. 29.

The company said the plan’s objective is to transfer all liquidating trust assets, including retained causes of action, to a liquidating trust. A trustee will administer the trust and liquidate the assets.

As previously reported, the company recently closed the sale of its assets. Circles MVNE Pte. Ltd. combined with Channel Ventures Group, LLC for a stalking horse asset purchase agreement to buy the assets.

Circles agreed to acquire the company’s mobile virtual network enabler business and associated contracts, and Channel Ventures 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 was a credit bid against about $60 million in secured claims under pre-petition loans and proposed debtor-in-possession loan held by the stalking horse bidders.

Under the plan, holders of administrative claims will receive cash equal to the unpaid portion of their claims.

Professional fees will be paid in cash from funds held in a professional fee escrow.

Priority tax claims will be paid in full in cash in installments.

Holders of secured tax claims, other secured claims and other priority claims will receive cash in an amount equal to their claims.

Holders of general unsecured claims, including the holder of the BNP Paribas loans, will receive their pro rata share of liquidating trust interests.

Interests will be canceled with no distribution.

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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