Collection operation and contact center business-process outsourcing provider iQor filed for Chapter 11 bankruptcy protection yesterday, seeking approval of a pre-packaged plan that would provide the company with $130 million of funding to reorganize itself and continue operating.
The company, one of the largest private employers in Tampa, listed only its U.S. operations in the bankruptcy filing, saying in a press release that its international operations in the Philippines, India, Mexico, Poland, Canada, Panama, Trinidad and Hong Kong are not part of the proceedings.
Among the different entities that are part of the company’s filing are:
- iQor Holdings Inc.
- Allied Interstate LLC
- Collectech Systems LLC
- Cyber City Teleservices Marketing, Inc.
- First Contact LLC
- Interactive Response Technologies, LLC
- iQor Global Services, LLC
- iQor Holdings US LLC
- iQor I LLC
- iQor MPC LLC
- iQor of Texas, LP
- iQor Seller Services LLC
- iQor Technologies Inc.
- iQor Texas Holdings, LLC
- iQor US Inc.
- Receivable Management Services – Recovery Division, LLC
- Receivable Management Services International, LLC
- RMS Canada Holding Corp.
- TechFive, LLC
- Telmar Allied, LLC
- Telmar Holdings I, Inc.
- THC Holdings, Inc.
- The Receivable Management Services LLC
“Over the past year, iQor has explored strategic initiatives to reduce our debt load and right-size our capital structure following an ambitious acquisition that ultimately underperformed,” said Gary Praznik, President and Chief Executive Officer of iQor, in a statement. “The recent steps we have taken toward achieving and executing our BPO platform strategy have moved us forward, as has our efficient response to COVID-19 disruptions. While we have made progress in rapidly expanding our end-to-end customer strategy, our capital structure remains over-levered relative to the current size of our operations. Accordingly, we determined that additional measures were necessary and in the Company’s long-term best interest as we work to reach our goals and capitalize on new opportunities.”
The company, which is owned by a private equity firm, will use $80 million of the $130 million it is being provided in and accounts receivable facility and the remaining $50 million will come in the form of a loan. The majority of the company’s lenders have already voiced their support for its reorganization plan. The company is hobbled by more than $865 million in long-term debt obligations, and hopes to shed $513 million through reorganization, according to a published report.