- Parateum (OTCPK:TEUM) announced that it has filed for voluntary protection under Chapter 11 of the U.S. Bankruptcy Code.
- It plans to execute a strategic asset sale under section 363 of the Bankruptcy Code while addressing legacy issues to best position the business for future success.
- The company has obtained a stalking horse bidder for a court-supervised sale process and as a result of arm's length negotiations, Circles MVNE has combined with Channel Ventures for executing a 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 CVG has agreed to acquire Mobile Virtual Network Operator, IDM, iPass, and SMBE businesses and associated contracts.
- To help fund and protect its operations, Pareteum has received a commitment from Circles for up to $6M in debtor-in-possession financing.