MLN US HoldCo is on a creditor-owned reorganization path under a modified prepackaged plan that would equitize most funded debt, preserve ordinary-course payment of general unsecured claims and cancel existing equity. The telecommunications provider entered Chapter 11 on March 9, 2025 after concluding that it could not refinance a roughly $1.31 billion funded-debt load carrying approximately $135 million of annual cash interest. Its liquidity pressure followed a difficult shift toward cloud communications, a 2022 priority-debt transaction challenged by junior lenders and a December 2024 decision not to make interest payments on the junior loans, which triggered cross-defaults and led to a forbearance while stakeholders negotiated the restructuring support agreement described in the First Day DeclarationDkt. 18.

The filing was designed as a balance-sheet restructuring rather than a sale or liquidation. The prepetition agreement contemplated approximately $1.15 billion of deleveraging and a $135 million reduction in annual cash interest, supported by substantial majorities of the priority-lien and non-priority-lien creditor groups. A DIP package—initially described as $60 million of new money plus a $62 million roll-up—was intended to fund operations through the accelerated case, while $64.5 million of new exit financing would support emergence. The restructuring also incorporated a consensual resolution of the litigation over the 2022 financing transaction, avoiding a separate contested path through confirmation.

The Modified Joint Prepackaged PlanDkt. 249 implements that bargain through a combination of exit debt and new equity. Priority-lien claims receive 66.7% and non-priority-lien deficiency claims receive 33.3% of the distributable new common equity before dilution; the DIP roll-up converts into 44.6% of new equity, and additional dilution comes from financing premiums and a 5% to 10% management incentive pool. The $17 million ABL facility is amended and restated, other secured and priority claims are paid or otherwise rendered unimpaired, and general unsecured claims remain unimpaired and payable in the ordinary course. Existing interests receive no recovery. Consummation depends on the required Canadian recognition and regulatory approvals, execution of the exit-financing and governance documents, payment of restructuring expenses and funding of the professional-fee escrow; those implementation conditions, rather than a marketing or auction process, define the remaining path reflected in the permitted docket record.