Mobileum, Eye Care Leader Get OK For Ch. 11 Plans

Texas bankruptcy judges approved Chapter 11 plans in two separate cases on Wednesday — a debt-for-equity swap for telecom analytics company Mobileum and a plan for optometry software maker Eye Care Leader to distribute the proceeds of its asset sale.

At a brief hearing in Houston, U.S. Bankruptcy Judge Christopher M. Lopez gave Mobelium the go-ahead to strip $529 million of its $690.6 million of secured debt in exchange for equity via an unopposed Chapter 11 plan.

Judge Lopez congratulated the professionals in the case for the “smooth sailing” that will see Mobileum emerge from bankruptcy less than two months after it filed for Chapter 11.

California-based Mobileum, which offers analytics and support services to telecommunications companies, filed for bankruptcy in July with its plan pre-approved by the majority of its lenders and its majority shareholder — private equity firm HIG Capital, which purchased its share from Audax Capital in 2022.

The company is facing a federal investigation for allegedly falsified time records. This led HIG to sue Audax, alleging it inflated Mobileum’s stock price by concealing the accounting issues, and Audax to sue HIG, alleging HIG’s mismanagement of Mobileum reduced the value of Audax’s remaining minority stake.

At the hearing, Mobileum counsel Alexander Welch said creditor support for the plan had been “overwhelming.” He said with the plan approved, the company will be emerging from Chapter 11 in two days.

Mobileum is represented by Gabriel A. Morgan, Clifford W. Carlson, Jeffrey D. Saferstein, Alexander W. Welch, Daphne Papadatos and Eric L. Einhorn of Weil Gotshal & Manges LLP.

The case is In re: Mobileum, Inc., case number 24-bk-90414, in the U.S. Bankruptcy Court for the Southern District of Texas.

Eye Doc Software Maker Sets Sights On Ch. 11 Exit

Also on Wednesday, U.S. Bankruptcy Judge Michelle V. Larson approved Eye Care Leader’s unopposed Chapter 11 plan after a brief hearing, noting the case had been “fairly tame” as far as bankruptcy cases go.

Its plan will distribute the proceeds of its May asset sale to creditors.

Eye Care — which makes specialty software for eye doctors and clinics — filed for Chapter 11 bankruptcy in mid-January with more than $123.3 million in debt, blaming data breaches, a shrinking customer base and unfavorable vendor contracts.

In May, Judge Larson approved the sale of Eye Care’s assets for $14.5 million to Colorado Bankers Life Insurance Co., which had provided Eye Care with $8 million in Chapter 11 financing. Subtracting the funds drawn on the financing will leave approximately $11.5 million in cash.

Under the plan, which counsel for Eye Care told Judge Larson had the unanimous support of the voting creditors, the cash will be placed in a trust along with any post-bankruptcy insurance or litigation recoveries to be split between the creditors.

The debtors are represented by Jason S. Brookner, Amber M. Carson and Emily F. Shanks of Gray Reed & McGraw LLP.

The case is In re: Eye Care Leaders Portfolio Holdings LLC et al., case number 8:24-bk-80001, in the U.S. Bankruptcy Court for the Northern District of Texas.

—Editing by Hilary Russ and Emily Kokoll.