Viegli is throwing support behind Mitel as the vendor files for voluntary petitions seeking relief under Chapter 11.
MD Nunn said: "I’m doubling down with them for sure. I have no interest in looking at other vendors right now. What I think about is just how powerful will this vendor be when it’s not burdened with $135 million a year in interest payments."
Mitel is implementing an agreement with an ad hoc group of its senior lenders, certain junior lenders, and other key stakeholders to recapitalise its debt. It is hoped that support from a majority of existing lenders and $124.5m in new financing will increase liquidity to optimise business operation and drive profitable and predictable growth.
This process will result in Mitel’s balance sheet being deleveraged by approximately $1.15 billion and its annual cash interest expense to be reduced by approximately $135 million.
Nunn added: "It makes me smile when I see comparisons between what Mitel are doing and what Avaya have been forced to do twice now. This, in my opinion, is a very structured and sensible approach to a debt restructure and if you take away all the competitor noise and look at what the channel is saying on social media we all pretty much believe that Mitel will continue to be a huge part of our industry."
CEO Tarun Loomba said: “We are confident the steps we are taking will make us a stronger company primed for efficient and sustainable growth. Our strengthened capabilities at the end of this process will ensure our ability to continue to support customers and partners.”
Mitel will continue to operate in the ordinary course throughout its financial reorganisation process, fulfilling its go-forward commitments to customers, partners, and other stakeholders.