Cor Cordis Secures Future for NetComm with Sale to Zhone Inc.

Cor Cordis is pleased to announce the successful restructure and sale of Australian telecommunications company NetComm to Zhone Inc., a subsidiary of Managed Network Systems Inc. (MNSi).

The transaction ensures the continuation of NetComm’s operations, ongoing support for customers globally, and a strong return for creditors following the collapse of its US parent company, DZSi, which filed for Chapter 7 bankruptcy in March 2025.

Cor Cordis partners Kate Conneely and Rahul Goyal were appointed Administrators of NetComm after the US-based DZSi ceased operations and withdrew shared services support. NetComm was left unable to operate, with paused R&D projects, delayed shipments and mounting supplier issues due to lack of funding from its parent.

“An immediate shutdown would have meant no return to any class of creditors and would have left customers without essential product support,” said Ms Conneely. “Our priority was to stabilise the business, maintain value, and find a buyer who could support a viable future.”

With support from remaining staff, key customers and suppliers, the Cor Cordis team rapidly implemented a sales campaign that generated several competitive offers. Following extensive negotiations, a deal was reached with Zhone Inc., who committed to a restructure that provided the best return to creditors.

Key outcomes of the restructure include:

• Full payment of employee entitlements
• A likely return of more than 50 cents in the dollar to unsecured creditors
• Continued support for NetComm products globally under new ownership.

The transaction required court approvals and was executed through a Deed of Company Arrangement and Creditors Trust, enabling the business to return to solvency and transfer operations to Zhone Inc. The existing NetComm directors were replaced by a Zhone nominee on completion. Cor Cordis acknowledges the critical contribution of its legal advisors Macpherson Kelley, led by Jeff Siddle and Kim O’Reilly, and the tireless efforts of the NetComm management team.

“This result reflects what’s possible when urgency, collaboration and commitment converge,” said Ms Conneely. “It was a challenging situation with no clear path forward at the start — but we were able to move quickly, align key stakeholders, and deliver an outcome that preserves jobs, value and continuity for customers around the world.”

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