Askume, Sep 12 – U.S. telecom service provider Mobileme said on Thursday it has emerged from Chapter 11 bankruptcy proceedings and secured $60 million of new financing to fund its bankruptcy proceedings, including $100 million of the financing for a pre-application loan.
The company said it has eliminated about $530 million in pre-petition debt. The company had previously sought to reduce debt by $529 million.
The telecom service provider filed for bankruptcy in July amid a dispute with its private equity owners over allegations that the company overstated its profits while marketing.
Private equity firm HIG acquired a majority stake in the company from Audax in 2022 for $915 million.
Audax denied the allegations and filed its own suit, stating that HIG’s mismanagement “instantly threw an otherwise fantastic business into trouble.”
