Pareteum Corporation and certain affiliates, a global cloud communications-platform-as-a-service company, yesterday filed for chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of New York, according to a company press release. The company intends to execute a strategic asset sale under section 363 of the Code while addressing legacy issues. Prior to the filing of the company's chapter 11 cases, the company's board of directors and management evaluated a wide range of strategic alternatives and implemented a strategic asset sale strategy. After a thorough marketing process to obtain a stalking-horse bidder for a court-supervised sale process and as a result of arm's length negotiations, Circles MVNE Pte. Ltd. has combined with Channel Ventures Group, LLC to execute a stalking horse asset purchase agreement for substantially all of the assets of the company. Circles has agreed to acquire the company's Mobile Virtual Network Enabler business and associated contracts, and CVG has agreed to acquire the Company's Mobile Virtual Network Operator, IDM, iPass, and Small and Medium Business Enterprise businesses and associated contracts. These agreements are subject to higher and better offers, among other conditions, as well as approval from the bankruptcy court.
