icoreconnect inc. files for chapter 11 bankruptcy protection

Published 03/06/2025, 22:46
icoreconnect inc. files for chapter 11 bankruptcy protection

Today, iCoreConnect Inc. (NASDAQ:ICCT) and its subsidiary, iCore Midco Inc., filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the Middle District of Florida, Orlando Division. The filing comes as no surprise to InvestingPro subscribers, who had access to critical warning signs including the company’s weak financial health score of 1.24 out of 10 and concerning current ratio of 0.1. The filing aims to allow the companies to restructure their balance sheets and optimize their organizational structure while maintaining control over assets and operations. The cases are designated as Case Nos. 6:25-bk-03390-GER and 6:25-bk-033991-GER.

The companies have requested joint administration of the bankruptcy cases to improve procedural efficiency. They plan to submit additional first-day motions to ensure business continuity. These motions include applications to employ professionals, use cash collateral, pay prepetition wages, and manage utilities.

As of June 2, 2025, iCoreConnect reported outstanding note payables of $10,026,552, which are in default due to the bankruptcy filing. This debt burden, combined with the company’s negative EBITDA of -$12.5 million and rapid cash burn rate, has put significant pressure on its operations. The company states that collection and enforcement activities by noteholders are subject to the automatic stay provisions of Section 362(a) of the Bankruptcy Code.

On March 10, 2025, iCoreConnect received a notice from PIGI Solutions, LLC regarding an auction of iCoreConnect’s assets. The company asserts that any collection and enforcement activities by PIGI are also subject to the automatic stay provisions.

This information is based on a press release statement filed with the Securities and Exchange Commission. Want to spot similar financial risks before they escalate? InvestingPro offers 12 additional warning signals and comprehensive financial health metrics to help investors make informed decisions.

In other recent news, iCoreConnect Inc. is facing significant challenges, including its impending delisting from the Nasdaq Stock Market due to delayed filings. The company failed to submit its annual Form 10-K for 2024 and its quarterly Form 10-Q for the first quarter of 2025, resulting in a suspension of trading on Nasdaq. Additionally, iCoreConnect has settled a lawsuit with PIGI Solutions, LLC, avoiding a public auction of its assets by agreeing to pay $3,099,747 by the end of May 2025. The settlement includes the payment of the claimed debt and auction expenses, as well as a $50,000 payment to a bidder. Previously, iCoreConnect received an extension from Nasdaq to meet listing standards, but it did not comply with the extended deadlines. In a strategic move, iCoreConnect has partnered with Florida Merchant Services to offer cloud-based solutions to dental practices, aiming to enhance operational efficiency. This partnership is expected to streamline processes like billing and insurance verification for dental practices. These developments highlight the company’s ongoing efforts to manage financial and operational challenges while expanding its market presence.

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