Key Takeaways:
- Mitel completed its financial restructuring, eliminating $1.15 billion in debt and reducing annual interest payments by $135 million.
- The company raised approximately $125 million in new funding to support future operations.
- Mitel aims to lead in hybrid and AI-powered unified communications and customer experience solutions.
- The company maintained strong performance during the restructuring, with growth in Germany and gains in UC and contact center revenue.
- Leadership cites improved agility, innovation, and readiness to meet rising enterprise demand for flexible, secure, hybrid communications.
Mitel has completed its financial restructuring, reducing its debt by $1.15 billion and raising $125 million in new funding, positioning itself for long-term growth in the evolving communications technology market. The move significantly reduces Mitel’s annual cash interest obligations—by an estimated $135 million—and gives the company a stronger capital foundation to pursue its strategic goals.
With operations spanning more than 100 countries and over 70 million users globally, Mitel is sharpening its focus on hybrid communications and AI-enabled enterprise collaboration. The company’s leadership emphasized that this restructuring not only stabilizes its financial position but also accelerates its product and market strategy.
“This marks a fresh start for Mitel,” said Tarun Loomba, President and CEO. “With the weight of legacy debt lifted, we are focused on accelerating our hybrid communications leadership.” Loomba noted the company’s upcoming priorities include expanding frontline worker solutions, enhancing Mitel CX, and scaling its hybrid platform developed jointly with Zoom.
Chief Financial Officer Janine Yetter added that despite undergoing restructuring, Mitel delivered a strong Q1 with year-over-year growth in key international markets such as Germany. She reported solid revenue performance across both unified communications and contact center offerings.
In March, we reported on the news of the restructuring… Eric Hanson, Chief Marketing Officer at Mitel, told us in an in-person interview that the company’s transformative financial restructuring and strategic direction supports Mitel’s vision for tailored hybrid solutions.
“The restructuring of our capital was a primary milestone that significantly changed our trajectory,” Hanson explained. “We reduced debt by $1.15 billion, lowering annual interest payments by $135 million, which positions us to fully capitalize on the hybrid communication market opportunity ahead.” This landmark financial adjustment removes prior operational constraints, allowing Mitel to invest in critical growth initiatives.
The company’s emphasis now turns to innovation and customer value. Its roadmap includes enabling enterprises to modernize at their own pace—balancing investment protection with new capabilities. With hybrid work models now considered a permanent shift in many sectors, Mitel aims to offer flexible, AI-infused communication infrastructure that aligns with industry-specific demands.
Serving industries with specialized requirements, Mitel continues to develop solutions that blend cloud and on-premise infrastructure. The company expects increased demand for communications resilience, security, and integration across channels—especially in healthcare, government, education, and other mission-critical sectors.
Mitel User Group Board President Cas Rangel framed the restructuring as a turning point. “It’s a clear signal of strength, focus, and forward momentum. Customers can expect a stronger, more agile, and more responsive partner that’s better positioned to innovate, support, and deliver lasting value.”
The company’s updated structure aligns it more closely with its current scale and market direction. Mitel’s strategy centers on enabling intelligent communications across digital and physical environments, including integrations with AI-driven contact center platforms and hybrid work tools.
With the restructuring complete and capital markets reaffirming support through the $125 million raise, Mitel is expected to press ahead with product expansion, partner development, and targeted global growth. As demand continues to rise for hybrid-ready enterprise platforms that blend voice, messaging, video, and customer engagement—Mitel is repositioning itself to meet that demand with renewed momentum and a cleaner balance sheet.
Learn how AI Agents can supercharge your company’s profits and productivity at TMC’s AI Agent Event, Sept 29-30, 2025 in DC.
If you liked this post, you’ll love one of the the leading global business communications and technology events since 1999, the ITEXPO #TECHSUPERSHOW, Feb 10-12, 2026 Fort Lauderdale, Florida.
Don’t forget the collocated MSP Expo – just for managed service providers!
Aside from his role as CEO of TMC and chairman of ITEXPO #TECHSUPERSHOW Feb 10-12, 2026, Rich Tehrani is CEO of RT Advisors and a Registered Representative (investment banker) with and offering securities through Four Points Capital Partners LLC (Four Points) (Member FINRA/SIPC). He handles capital/debt raises as well as M&A. RT Advisors is not owned by Four Points.
The above is not an endorsement or recommendation to buy/sell any security or sector mentioned. No companies mentioned above are current or past clients of RT Advisors.
The views and opinions expressed above are those of the participants. While believed to be reliable, the information has not been independently verified for accuracy. Any broad, general statements made herein are provided for context only and should not be construed as exhaustive or universally applicable.
Portions of this article may have been developed with the assistance of artificial intelligence, which may have contributed to ideation, content generation, factual review, or editing
