TPx Communications, officially U.S. TelePacific Corp., along with 11 affiliated companies, filed for Chapter 11 bankruptcy on June 28, to restructure debt while continuing operations. The bankruptcy filing was prompted by significant debt obligations, including a first-lien senior secured term loan of approximately $372 million that matured in May 2026, while TPx had roughly $33 million in cash. The company reported assets between $100 million and $500 million and liabilities exceeding $1.1 billion, with more than 1,000 creditors.
The national MSP announced it has reached an amended and restated Restructuring Support Agreement with its existing sponsor and holders representing a significant majority of the company’s outstanding funded debt, positioning TPx for its next phase of growth. The agreement strengthens TPx’s financial foundation by providing a commitment for recapitalization and elimination of significant debt that will allow TPx to continue to build upon positive EBITDA and free cash flow growth.
“This agreement with our lenders marks a substantial step forward for TPx,” said Shaun Andrews, CEO of TPx. “It gives us the flexibility to accelerate our strategy, increase investments that grow the business, and deliver exceptional managed services to our customers. We’re energized by the opportunities this creates and the path ahead.”
In connection with this process, TPx has received new financing commitments, including DIP financing and exit financing from its existing lenders to provide the company with sufficient liquidity to support the business throughout the Chapter 11 process and beyond.
“TPx aims to move through this process quickly and efficiently,” said company executives.
According to a posting on the TPx website, channel partners should expect no impact to their contracts or sales commissions as a result of the proceedings. TPx owes $3.2 million of its debt to third-party firms and agents in its commission program, the company said in a filing.
Founded in 1998 as competitive local exchange carrier TelePacific, TPx has made substantial investments in rebranding and reinventing itself as TPX the MSP, starting back in 2017. At the time, this was seen as one of the early moves in the convergence of telecom and IT.
