Mitel Networks Corporation has successfully completed its financial restructuring, dramatically improving its debt position. The company eliminated $1.15 billion in debt and reduced annual interest expenses by approximately $135 million. This is according to the press release published by Mitel.
Strong Foundation for Growth
The restructuring positions Mitel as a financially healthy player in the business communications market. The company also secured $125 million in new financing to support operational activities.
“Today marks a fresh start for Mitel”, said CEO Tarun Loomba. “With the weight of legacy debt removed, we are focused on accelerating our leadership in hybrid communications. We have a portfolio designed to provide enterprise customers with secure, reliable, and modern communication solutions.”
Focus on Hybrid Communications and AI
With its improved financial position, Mitel is fully committed to hybrid communication solutions and artificial intelligence. The company anticipates the growing demand from enterprises for flexible workplace solutions, with 92% of organizations prioritizing hybrid work models.
Mitel currently serves more than 70 million users in over 100 countries. The company aims to further strengthen its position by expanding workforce communication experiences and improving vertical solutions for frontline workers, Mitel CX, and the jointly developed hybrid solution with Zoom.
Strong Q1 Performance Despite Restructuring
CFO Janine Yetter emphasized that despite the restructuring, the company achieved strong quarterly results. “Our Q1 results remained consistent with remarkable year-over-year growth in Germany and solid gains in UC and contact center revenue,” Yetter stated.
The improved balance sheet enables Mitel to accelerate its strategic plans with a focus on flexible, secure, and mission-critical hybrid communication solutions.