Mitel Files for Chapter 11 Bankruptcy
March 12th, 2025 by admin
Mitel has filed for a reorganization under a Chapter 11 bankruptcy petition. Under Chapter 11 they are allowed to keep operating and at the same time, are relieved of all of part the debt load going back to include many mergers and acquisitions over the past several years. This also relieves over about $135 million dollars a year in interest payments.
Mitel has an enormous base of premise systems throughout the world, giving them a large source of income that can allow them to continue to operate and support the older base and develop new premise based systems.
At TOTLCOM, we have seen the world largely turning away from premise systems, to cloud based systems like Ring Central and GoTo, two of the companies we represent. For us there has been little demand for new premise based systems over the past couple of years because our customers are almost exclusively turning to Cloud based. However there are some companies and government organizations that prefer premise based. Mitel intends to capture that market.
TOTLCOM still has a large base of Mitel (ex-ShoreTel) systems with customers who have not been in a hurry to change, sort of an attitude that “If it isn’t broken, don’t fix it.” But eventually everyone will have to make a change to a new system, whether it be cloud, premise or hybrid based, it is just a matter of when. We are here to help and assist in whatever changes our customers request.
With the ongoing assistance from Mitel, TOTLCOM will continue to support our existing Mitel base and we predict we will be able to do that up until the end of the decade. We do advise everyone to plan ahead, consult with us for your best options and please don’t wait until the very last moment to try and make such a monumental change.
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