Mitel Optimizes Capital Structure to
Fuel Business Strategy and Long-term Success

FAQS

• General FAQs

  General FAQs

  What did Mitel announce?
  On March 9, 2025, Mitel entered into an agreement with an Ad Hoc Group of our senior lenders, certain junior lenders, and other key stakeholders to restructure our finances and recapitalize our debt in a manner that best positions us for the future. To implement the agreement, Mitel filed for voluntary protection under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas.
  
  As part of the agreement, certain of Mitel’s lenders committed to invest $124.5 million to support this process, which will significantly reduce the Company’s long-term debt obligations.
   
  Why and how did Mitel come to this decision?
  Like many organizations, Mitel has faced macroeconomic challenges in recent years as we navigated a changing capital market, increasing interest rates, and our maturities coming due later this year. While we have a healthy business that is performing well, we carry an untenable debt load that has impacted our ability to fully capitalize on profitable areas of the business. It is only natural that we reevaluate our financial condition to reduce our debt and optimize our capital structure.
  
  As part of these efforts, we have been evaluating strategic options to position the Company against our competitors for sustained, long-term success. Since we reached agreement with the support from the Ad Hoc Group and other key stakeholders, as outlined in the restructuring support agreement, we intend this to be a swift, streamlined process.
   
  What is Chapter 11? How will the Chapter 11 process impact day-to-day operations at Mitel?
  Chapter 11 is a legal tool that enables companies to operate in the ordinary course as they work to address their capital structure in the background. We will continue to meet obligations to our stakeholders, including our employees, customers, vendors, and other partners.
   
  Many others in our space and across the technology industry have gone through similar debt restructuring processes and emerged as healthier enterprises with right-sized capital structures. We aim to do the same.
   
  Is Mitel going out of business? How is Chapter 11 different from other bankruptcy processes?
  We understand that the terms Chapter 11 and bankruptcy may have a negative connotation. This is not a liquidation or what you might think when you hear the word “bankruptcy.” Chapter 11 differs from other global bankruptcy processes. In the U.S., Chapter 11 is a structured, court-supervised process that allows a company to operate in the ordinary course and meet stakeholder obligations while it works to resolve capital structure challenges. This is one tool that companies can use to address capital structure challenges, and in our case, we’ve determined it to be the most efficient path forward.
   
  What is a “pre-packaged” plan of reorganization?
  A “pre-packaged” plan of reorganization is a Chapter 11 bankruptcy plan that is pre-negotiated and fully agreed to by the required creditors prior to the bankruptcy filing. This will enable the Company to move through this process efficiently and with minimal disruptions to our operations or relationships with trade vendors, partners, and customers.
   
  Which entities of Mitel are included in this process? Which aren’t?
  While we are one global company, Mitel operates via different business entities in different countries. While these specific financial restructuring actions are limited to certain Mitel business entities in the U.S., Canada, and the U.K., our entire global organization will benefit from a stronger balance sheet at the end of this process.
   
  Does Mitel have the financial resources to complete this process?
  Yes – Mitel has sufficient liquidity to continue business in the ordinary course throughout this process. In addition to our normal operating cash flows, we have secured $60 million in new- money debtor-in-possession financing from our lenders, ensuring our ability to continue meeting commitments to stakeholders without disruption.
   
  Will Mitel’s current ownership structure remain in place?
  Mitel’s lenders will assume control of our company as outlined in our agreement with them.
   
  Who are the Company’s lenders? What will change—if anything—under new ownership? Do they have intentions to divest parts of the business?
  The Company’s lenders are a group of financial institutions. At the end of this process, our lenders will take ownership of our business. We will continue executing our strategy with the confidence of our lenders. While we always evaluate the business and evolve to meet the needs of our customers, there are no plans to divest parts of the business due to the filing.
   
  Does Mitel plan to discontinue any products or services as a result of this process?
  No – you should see no change in our product or service offerings as a result of this announcement. We are confident that our restructuring process will better position Mitel for further innovation, allowing us to continue meeting the evolving needs of our customers and lead in the hybrid communications space.
   
  Will Mitel’s existing leadership team stay in place?
  Yes. There are no changes to our leadership team as a result of this process.
   
  How long will this process take?
  While several factors could impact the timeline, we are working diligently to move through and emerge from Chapter 11 as quickly and efficiently as possible.
   
  What are the immediate next steps in the process?
  As an immediate step in the process, we have filed certain customary motions to transition into Chapter 11 without disruption to our operations. Once approved within the first few days of the case, these motions will allow Mitel to meet our go-forward stakeholder obligations during this time. The nature of our pre-packaged plan means that we aim to move through this process quickly and efficiently, with minimal disruptions to our business.
   
  What is Mitel’s go-forward business strategy?
  Our strategy remains consistent: to lead the hybrid market by leveraging our incumbency advantage to attract new customers and grow our base with innovative hybrid solutions and services.
   
  How is Mitel's case similar to or different from other companies in our industry that have gone through Chapter 11?
  Mitel has entered Chapter 11 with a pre-packaged plan, enabling us to restructure quickly and efficiently with the support of our creditors. Many well-known companies in the tech solutions industry and beyond, including Avaya and The Container Store, have successfully emerged from Chapter 11 through a pre-packaged plan. We are confident that we will do the same and exit this process in a timely manner. This process will position us for sustained growth and ensure that we are even better equipped to serve our customers for years to come.
   
  Is this announcement a result of the Unify acquisition?
  Not at all. Acquiring Unify is the catalyst enabling us to go where the market is going by unlocking an even broader geographic footprint, large enterprise experience, and services for our business.
   
  Is this announcement the result of Mitel’s prior relationship with RingCentral?
  No. This relates to Mitel’s capital structure dating back to the financing of going private in 2018 combined with macroeconomic dynamics that followed, including the lingering impacts of the pandemic on supply chain costs and increased interest rates.
   
  What is a “First Day Motion”?
  In a Chapter 11 bankruptcy, "First Day Motions" are requests filed by the debtor seeking immediate relief to facilitate the transition into bankruptcy and continue operations.
   
  What do the First Day Motions mean for Mitel?
  First Day Motions ensure that Mitel is able to operate in the ordinary course and meet our commitments to all our stakeholders, including our employees, partners, vendors, and customers, throughout the duration of our Chapter 11 process. The Court approved our First Day Motions, which is a positive step forward and demonstrates momentum for Mitel.
   
  What happens if the refinancing is not completed as planned?
  Since Mitel filed a “pre-packaged” bankruptcy it has been pre-negotiated and fully agreed to by the required creditors prior to the bankruptcy filing. Therefore, we intend this to be a swift, streamlined process.
   
  
• Customer FAQs

  Customer FAQs

  What does this announcement mean for customers?
  Mitel is operating in the ordinary course of business throughout this process, with a continued focus on providing the same high-quality products and services you have come to expect from us. Please be assured we are working diligently to make this a smooth and quick process.
  
  The actions we are taking are designed to position Mitel for efficient growth and long-term sustainability, improving our ability to deliver flexible, secure, and mission-critical communications solutions.
   
  Are there going to be any service disruptions or delays as a result of this announcement?
  We understand you rely on our innovative products and services for your mission-critical operations, and meeting our commitments to you remains our primary focus throughout this process. You should not experience any service disruptions or delays as a result of this announcement.
   
  Why should I continue to do business with Mitel?
  We adapt to the ever-changing communications industry, shaping how organizations worldwide connect and communicate, and we are here to stay. We are grateful for your business and understand you rely on our communications solutions for your mission-critical operations. You should continue doing business with Mitel for the reasons you do today: for reliable, trusted, secure, and flexible solutions that power your business.
   
  Will my contract with Mitel change as a result of this announcement?
  Our contracts and payment terms currently remain in place and should not be impacted by this announcement. We deeply value our relationship and assure you that Mitel is operating as usual. You should likely see no impact to the way we do business with one another.
   
  Will Mitel raise its prices as a result of this announcement?
  Pricing should not be impacted by this announcement and will continue to be evaluated and adjusted in the normal course of business.<
   
  Is Mitel accepting new customers during this process?
  Yes, Mitel welcomes new customers during this process.
   
  How will customers be kept informed during this process, and where can I direct additional questions?
  We are committed to transparent communication and will provide you with updates as we have more information to share. You may reach out to your channel partner or Mitel representative with any additional questions. Please note that customers will soon receive customary legal notices in the mail regarding our case. While most of these notices do not require action on your end, you are encouraged to review them to learn more.
   
  What does approval of the “First Day Motions” mean for customers?
  Approval of our First Day Motions is a positive step forward in our case as it enables us to continue upholding our Customer and Partner programs in the ordinary course, allowing us to meet our commitments to you without interruption. While these approvals were expected, they demonstrate positive momentum in the process and our commitment to deliver our ecosystem of products and services as usual and honor our commitments to you throughout this process as we work to strengthen our capital structure.
   
  I’ve seen competitors online say that Mitel is no longer reliable. Should I transition my services?
  No. There is no need to transition your services as we are operating as usual across all geographies. We adapt to the ever-changing communications industry, shaping how organizations worldwide connect and communicate, and we are here to stay. We are grateful for your business and understand you rely on our communications solutions for your mission-critical operations. You should continue doing business with Mitel for the reasons you do today: for reliable, trusted, secure, and flexible solutions that power your business.
   
  
• Channel Partner FAQs

  Channel Partner FAQs

  What does this announcement mean for me?
  Mitel is operating in the ordinary course and will meet our go-forward obligations to our partners as they come due, including paying invoices/POs from after our Chapter 11 filing date, March 9, 2025. We deeply value our relationship with you, and this announcement does not impact the business we do together.
   
  Will my contract with Mitel be impacted?
  This process should have no impact on your current contract with Mitel. We filed certain motions with the Court to protect our relationship with you, and there is no reason for you to change contract terms at this time.
   
  Will this announcement affect my Global Partner Program contract?
  This process will neither impact your current Global Partner program contract nor recognized level within Mitel’s Global Partner Program. Mitel partners are encouraged to continue supporting our shared customers’ communication needs and will continue to accrue eligible points. Plans to harmonize our two legacy programs are underway and are not affected by this announcement.
   
  How does this announcement impact customers?
  Mitel remains focused on providing the same high-quality products and services our customers have come to expect from us. We are working diligently to make this a smooth and quick process for them and are confident this process will position us to even better serve customers.
   
  I would l like to change my contract terms. How can I go about doing that?
  There is no reason to change the terms of your contract as we fully intend to fulfill our obligations to you during this time. Additionally, the provisions of the U.S. Bankruptcy Code may preclude us from adjusting contracts with you.
   
  Why should I continue doing business with Mitel?
  Our partnership with you is critical in enabling us to provide our shared customers with the best solutions, services, and experience.
   
  Together, we adapt to the ever-changing communications industry, shaping how organizations worldwide connect and communicate, and we are here to stay. You should continue doing business with Mitel for the reasons you do today: for reliable, trusted, secure, and flexible solutions that power your business.
   
  How do I respond to questions or concerns from my customers?
  Please use this FAQ to address customer questions, and most importantly, to assure customers that this announcement will not disrupt their Mitel solutions or services. For questions that aren’t addressed in this FAQ, please reach out to your regular Mitel representative.
   
  How will Mitel help me respond to competitors and protect our mutual customers or opportunities in motion during this time?
  We understand that competitors may try to encourage fear, uncertainty, and doubt (FUD) during this time. We expect the process to be too short for current customers to make major decisions to change their communications solutions. To minimize disruption, we are focused on clear and regular communications and will leverage the strong relationships between Mitel and our partners, and you and our customers.
  
  Where can I go if I have additional questions?
  We will provide updates as there is news to share. If you have any questions, please reach out to your Mitel representative. You can also visit our dedicated microsite at www.mitel.com/about/financial-restructuring for the latest news and resources.

• Filing Entity Vendors FAQs

  Filing Entity Vendor FAQs (US, Canada, UK)

  How does this announcement impact vendors?
  We will operate in the ordinary course throughout this process and fulfill our go-forward obligations to our vendors as they come due.
   
  Will Mitel continue to place orders?
  Yes. Mitel will continue to place orders and interact with vendors, as usual.
   
  What goods and services will I receive payments for?
  Mitel has filed an all-trade motion with the Bankruptcy Court that will allow us to pay vendors and distributors in the normal course for all goods and services delivered to Mitel before and after March 9, 2025, the day of our Chapter 11 filing.
   
  How does this impact my current contract with Mitel? Can I change the terms of my current contract?
  This process should have no impact on your current contract with Mitel. We are relying on you to continue providing the products and services we need under normal operating terms in order to deliver excellent communications solutions for our customers. Notably, under the provisions of the bankruptcy code, vendors are required to continue upholding our agreements, and we are not permitted to change contract terms while we work through our financial restructuring.
   
  Why should I continue doing business with Mitel?
  Our vendors are our partners in our business, and we deeply value our relationship with you. We will continue to serve you in the ordinary course. We are relying on you to continue providing the products and services we need under normal operating terms in order to deliver excellent communications solutions for our customers.
   
  How will vendors be kept informed during this process, and where can I direct additional questions?
  We will provide updates as there is news to share. If you have any questions, please reach out to your Mitel representative. You can also visit our dedicated microsite at www.mitel.com/about/financial-restructuring. For information regarding Mitel’s case, please contact our claims agent, Stretto, at (855) 704-1401 (for toll-free calls) or (949) 570-9105 (for international calls), or by visiting cases.stretto.com/mitel.
   
  What does approval of the “First Day Motions” mean for vendors?
  Approval of our First Day Motions is a positive step in our case as it enables Mitel to operate and serve vendors in the ordinary course. Specifically, the Court approved our all-trade motion, which will allow us to pay you for goods and services delivered before and after March 9, 2025, our filing date. We deeply value our partnership with you and are committed to maintaining our relationship during this process and beyond.
   
  Why should vendors continue to deliver to Mitel?
  Mitel is operating in the ordinary course and will pay vendors for all goods and services delivered before and after March 9, 2025, our filing date, so there is no reason to stop delivering to the Company. We are relying on you to continue providing the products and services we need under normal operating terms in order to deliver excellent communications solutions for our customers.
   
  
• Non-Filing Entity Vendors FAQs

  Non-Filing Entity Vendor FAQs

  How does the announcement affect Mitel’s relationship with vendors who work with non- filing entities?
  We are operating in the ordinary course throughout this process and will continue fulfilling our go-forward obligations to our vendors as they come due. While our financial restructuring is limited to certain Mitel entities in the U.S., Canada, and the U.K., our entire organization will benefit from a stronger balance sheet at the end of this process.
   
  Will my contract remain in place? What about my company contact?
  This process should have no impact on your current contract with Mitel. Your company contact remains the same.
   
  Where can I go if I have additional questions?
  We will provide updates as there is news to share. If you have any questions, please reach out to your Mitel representative. You can also visit our dedicated microsite at www.mitel.com/about/financial-restructuring.
   
  What does approval of the “First Day Motions” mean for vendors?
  Approval of our First Day Motions is a positive step in our case as it enables Mitel to operate and serve vendors in the ordinary course. Specifically, the Court approved our all-trade motion, which will allow us to pay you for goods and services delivered before and after March 9, 2025, our filing date. We deeply value our partnership with you and are committed to maintaining our relationship during this process and beyond.
   
  Why should vendors continue to deliver to Mitel?
  Mitel is operating in the ordinary course and will pay vendors for all goods and services delivered before and after March 9, 2025, our filing date, so there is no reason to stop delivering to the Company. We are relying on you to continue providing the products and services we need under normal operating terms in order to deliver excellent communications solutions for our customers.