I was recently appointed the Interim CEO of TelexFREE by Jim Merrill and Carlos Wanzeler to lead TelexFREE through its next phase of development. To achieve our goal of strengthening TelexFREE, addressing our liabilities, and building a financially sound foundation with long-term prospects, today we have filed a petition for relief under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Nevada.
For those of you not familiar with U.S. Chapter 11 laws, Chapter 11 is a legal process that can help the company reorganize and restructure its debts while continuing to manage and operate its business on a day-to-day basis. Chapter 11 gives TelexFREE and our management team the opportunity to strengthen our financial structure and overall operations,. We are taking this major step, because we continue to firmly believe in our business, our product and the enthusiasm of our global independent sales associates despite the challenges facing us. In the meantime, we expect our business will continue to operate, and we will strive to support our sales associates and customers with new products and improved services, including VoIP services that we are expanding to reach over 70 countries.
We expect that this will be a seamless transition for our customers around the world.
Even though we need to make some difficult decisions about the structure of our compensation plans, the product and the value we offer our customers—not to mention the outstanding entrepreneurial opportunities we provide our dedicated teams of Independent Sales Associates—it means that we believe this company continues to have a bright future.
How does Chapter 11 help us do all that? It gives TelexFREE an opportunity to address our claims and get our feet firmly planted with a solid organizational and financial foundation
We are committed to providing our customers the finest communications products and services available anywhere in the world and our Promoters the opportunity to achieve a profitable future.
To that end, as a company we know we can do even better! We intend to use the Chapter 11 process to put the systems and controls in place to provide you the support you need to build your sales business. Once we have implemented our anticipated restructuring, we intend for you to be better informed, better supported, and to have a better knowledge of the TelexFREE strategy as we move forward together. During this Chapter 11 process, we anticipate regularly communicating with you about TelexFREE and our organizational efforts,
I am confident that with the loyalty of our customers and Independent Sales Associates, we are becoming stronger than ever!
Stuart A. MacMillan
Interim Chief Executive Officer