TelexFree Issues Statement
Earlier this week, TelexFREE filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code. The Chapter 11 filing is intended to protect TelexFREE assets, quantify legitimate claims, restructure our operations, and establish a firm foundation for the future. The Chapter 11 filing further demonstrates our belief in the strength of our core business and products and the enthusiasm and dedication of our independent sales associates as well as our determination to protect the assets of the Company and maximize the recoveries for all constituents.
We remain confident in the Company's long-term business prospects and the value of the services we provide to customers. Unfortunately, the precipitous and unnecessary actions taken by the state and federal agencies have temporarily suspended the VoIP services TelexFREE customers rely on. The Company disputes the material allegations made by these agencies and regrets that their actions impede our ability to continue to serve our customers, restructure our operations, and thereby emerge as a stronger and more competitive company.
TelexFREE believes the Chapter 11 process is the most effective vehicle available to address the concerns of all constituencies, including the purported concerns of the state and federal agencies. We intend to address the pending legal proceedings against it through the Court process.
We remain confident that the value of our products, the benefits we provide our customers, and the outstanding entrepreneurial opportunities we provide our independent sales associates ultimately will be recognized and misunderstandings about our business model will be resolved.
Alvarez & Marsal North America, LLC is serving as restructuring advisor to the Company and Greenberg Traurig, LLP and Gordon Silver are serving as legal advisors to TelexFREE.
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