Mobileum emerges from Chapter 11 bankruptcy process

(Reuters) -U.S. telecom services provider Mobileum said on Thursday it had emerged from the Chapter 11 bankruptcy process, and secured $60 million of new financing to fund its bankruptcy process, with $100 million of financing for prepetition debt.

The company said it has eliminated approximately $530 million in prepetition debt. It previously sought to cut $529 million in debt.

The telecom services provider filed for bankruptcy in July, amid its private equity owners battling over allegations that the company overstated its profits when marketing itself for sale.

Private equity firm HIG bought a majority stake in the company from Audax in a $915 million deal in 2022. The firms later sued each other, with HIG alleging that Audax helped artificially inflate Mobileum's financial results before selling it to HIG.

Audax denied the allegations and filed its own lawsuit, saying that HIG's mismanagement "promptly ran what was a high-performing business into the ground."

(Reporting by Angela Christy in Bengaluru; Editing by Rashmi Aich)