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In a dramatic turn for the telecom financing sector, Carriox Capital II LLC and BB Capital SPV LLC, two affiliates of Carriox Capital, have filed for Chapter 11 bankruptcy protection in New York. The filings, lodged late Monday, reveal staggering liabilities ranging between $500 million and $1 billion, underscoring the depth of the financial turmoil engulfing the company.

The move follows in the footsteps of five other Carriox affiliates, which sought bankruptcy protection in August — signaling a systemic collapse within the financing network that once powered telecommunications carriers and infrastructure firms.

A Crumbling Network of Financial Support

According to previous filings, Carriox specialized in factoring and invoice financing, a critical lifeline for telecom carriers and cell tower companies. By purchasing receivables, the firm allowed its clients to access immediate cash flow — until its own liquidity pipeline began to dry up.

Court documents indicate that the earlier bankruptcies were triggered after secured lenders placed the affiliates in default in July, a move that sent ripples through the company’s tightly woven financial structure. The latest filings suggest that Carriox’s entire financing web is now unraveling under mounting debt and lender pressure.

Advisors Step In to Steer the Rescue

The debtors have tapped Getzler Henrich LLP as their financial advisor, signaling an attempt to stabilize operations while charting a restructuring path. Legal representation for the entities will be led by John E. Jureller Jr. of Klestadt Winters Jureller Southard & Stevens LLP, a firm experienced in complex bankruptcy cases.

While Carriox Capital itself has yet to issue a public statement, industry observers view the collapse as another cautionary tale in the high-risk world of telecom infrastructure financing, where tight margins and delayed payments can send even the most structured firms into free fall.

The Chapter 11 filings mark the latest chapter in a deepening saga that could reshape financing flows within the U.S. telecommunications sector.