Telecoms software provider Mobileum filed for Chapter 11 bankruptcy protection in the US, as the company at the heart of a row between investors seeks to restructure and cut $529 million of debt.

Outlining its proposed restructuring, Mobileum claimed it had the full support of its major financial partners and expected to emerge from the process within 60 days of it starting.

It made the move on 23 July.

The procedure does not include subsidiaries based outside the US. Its international operations fall beyond the court-supervised restructuring, it noted.  

In the meantime, Mobileum secured $60 million of new financing from its lenders to fund continued operations.

The company’s CEO Mike Salfity described the move as an “important step forward that will position Mobileum to continue as a leading provider for the telecom industry for the long-term”.

“With a strengthened balance sheet and the committed support of our financial partners, Mobileum will be equipped with the financial flexibility to build for the future,” he added. “Importantly, we expect complete continuity during this process and for our customers to maintain uninterrupted access” to its products and services.

The move comes at a time when Mobileum is the subject of a legal battle between its current majority shareholder HIG Capital and former owner Audax Private Equity, over allegations the software company’s purchase price was artificially inflated.

Reuters reported a case filed by HIG and a counterclaim from Audax were both still outstanding at a US court.