About Mitel's Financial Restructuring

General FAQs

 
 1.    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.

Effective June 20, 2025, Mitel has successfully completed our financial restructuring process. We have reduced our debt by approximately $1.15B, reduced our annual cash interest expense by approximately $135M, and raised approximately $125M of new funding in aggregate to support our go-forward operations. We are emerging with a significantly stronger balance sheet, well-positioned to drive innovation and growth for the long term.

2.    Why did Mitel enter into this financial restructuring process?
Like many organizations, Mitel has faced macroeconomic challenges in recent years as we navigated 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 carried an untenable debt load that impacted our ability to fully capitalize on profitable areas of the business.

3.    What did Mitel achieve through this financial restructuring process? 
Mitel has reduced our debt by approximately $1.15B and reduced our annual cash interest expense by approximately $135M, significantly improving our capital structure. With this deleveraged balanced sheet, we have a healthy capital structure appropriate for an organization of our size.

4.    What does it mean to “emerge,” and what are the next steps for the business? 
Emergence signals that we have completed our financial restructuring process, including the Chapter 11 process, and Mitel no longer will need to operate under supervision of the Bankruptcy court. This is a significant milestone for Mitel and the beginning of a new chapter as a financially stronger company. We remain focused on supporting our global customers, building on the momentum of our portfolio, and optimizing our business, all while continuing to deliver the secure, flexible, and mission-critical communications solutions our customers count on.

5.    Who are the new owners of Mitel?
Ownership has transitioned from Searchlight Capital Partners to our lenders. A new board of directors will be appointed reflecting the change in ownership. Many of our new owners are well-established investment firms that are familiar with our company, including our products and services and business strategy.  

6.    Will there be any leadership changes?   
There are no anticipated changes to the leadership team at this time.

7.    What are Mitel’s objectives moving forward? 
With a fortified balance sheet and 92% of organizations prioritizing hybrid, Mitel is turning its full attention to executing a focused strategy centered on hybrid innovation and AI capabilities that meets the rising enterprise demand. Serving more than 70 million users in over 100 countries, Mitel will continue to drive innovation that delivers everyday value to customers as they maximize the value of existing investments, adopt emerging technologies like AI, and address specialized requirements in the most demanding industries and geographies through a hybrid communications strategy.

We are excited to continue introducing enhanced workforce communications experiences, vertical solutions for frontline workers, and enhancing Mitel CX and our jointly developed hybrid solution with Zoom through the balance of the year. 

 

Customer FAQs

 1.    What does Mitel’s emergence mean for customers? 
Our primary goal throughout this process was to strengthen our ability to support you, our customers, in meeting your business needs—and we have successfully achieved that. We have completed a substantial reduction of our debt, strengthening our balance sheet so we can be an even stronger partner with a stronger financial position to serve you for the long term.

2.    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’re confident the best is yet to come. 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.

3.    Will Mitel increase prices moving forward?
Pricing will continue to be evaluated and adjusted in the normal course of business.

4.    Will there be any changes to my services or contracts?
Our contracts and payment terms currently remain in place. We deeply value our relationship, and you should likely see no impact to the way we do business with one another.

5.    Where can I go if I have any additional questions?
Please feel free to reach out to your Mitel representative with any questions—we are always here to help. You can also visit our dedicated microsite at www.mitel.com/about/financial-restructuring for the latest news and resources.

Channel Partner FAQs

1.    What does Mitel’s emergence mean for me? 
We have completed a substantial reduction of our debt, strengthening our financial position so we can be an even stronger partner to you. You play a key role in our operations, and we appreciate your role in growing our business and delivering for our customers.  

2.    Will my contract with Mitel be affected by emergence?  
No. This announcement does not impact your current contract with Mitel. We have been—and will continue to—provide the same high-quality solutions you and our shared customers rely on.

3.    Will this announcement affect my Global Partner Program contract?   
This announcement will not impact your current Global Partner Program contract or your 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.

4.    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’re confident the best is yet to come. You should continue doing business with Mitel for the reasons you do today: for reliable, trusted, secure, and flexible solutions that power your business.    

5.    Where can I go if I have any additional questions?
Please feel free to reach out to your Mitel representative with any questions—we are always here to help. You can also visit our dedicated microsite at www.mitel.com/about/financial-restructuring for the latest news and resources.
 

Vendor FAQs 

 1.    What does Mitel’s emergence mean for vendors? 
We have completed a reduction of our debt, strengthening our financial position so we can be an even stronger partner to you going forward. You play a key role in our operations, and we appreciate your role in growing our business and delivering for our customers.  

2.    Will I be paid on regular payment terms now that Mitel has exited bankruptcy? 
Our payment terms and scheduling currently remain in place. We deeply value our relationship, and you should likely see no impact to the way we do business with one another.

3.    Will there be any changes to my contract?
There should be no impact on your current contract with Mitel. Mitel will continue to pay vendors and distributors for all goods and services as and when due.

4.    Will I be paid on regular payment terms now that Mitel has a stronger capital structure? 
We deeply value our partnership and will work to continue to uphold our commitments to you. We also rely on you to continue providing the products and services we need under normal operating terms to deliver excellent communications solutions for our customers.

5.    Where can I go if I have any additional questions?
Please feel free to reach out to your Mitel representative with any questions—we are always here to help. You can also visit our dedicated microsite at www.mitel.com/about/financial-restructuring for the latest news and resources.