Cloud Computing Firm Pareteum Wins Bankruptcy Plan Approval

Pareteum Corp., a bankrupt provider of cloud communications services, won court approval to liquidate and pay back creditors, using a trust funded by an asset sale valued at about $60 million.

Pareteum will create a $1.25 million liquidating trust to pay a class of unsecured creditors, according to a Chapter 11 plan approved Thursday by Judge Lisa G. Beckerman of the US Bankruptcy Court for the Southern District of New York.

The trust will also pursue any potential causes of legal action that could bolster cash recoveries for the creditor group, the plan said.

Pareteum pieced together a wind-down plan, ...