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8-K - CURRENT REPORT - Fusion Connect, Inc. | fsnn_8k.htm |
Exhibit 99.1
Fusion Successfully Completes Financial Restructuring
Company Emerges from Chapter 11 with a Significantly Enhanced
Capital Structure
ATLANTA, Jan. 14, 2020 /PRNewswire/ -- Fusion, a leading
provider of integrated technology solutions, today announced that
the Company, along with each of its U.S. subsidiaries, has emerged
from Chapter 11 bankruptcy protection, successfully completing its
financial restructuring process and implementing its plan of
reorganization (the “Plan”), which was confirmed by the
U.S. Bankruptcy Court for the Southern District of New York on
December 17, 2019.
Approximately
$400 million of the Company's indebtedness was eliminated in
the reorganization. Fusion emerges from this process as a much
stronger company, with a sustainable capital structure to support
its future growth plans and to continue to serve customers with a
comprehensive portfolio of solutions well into the future.
Fusion’s balance sheet has been strengthened through a $115
million exit financing loan provided by a subset of the
Company’s first lien lenders.
“We
are very pleased to be emerging from our restructuring
expeditiously as planned,” said Kevin Brand, President, Chief
Operating Officer, and Interim Chief Executive Officer. “I
greatly appreciate the support of Fusion’s dedicated
employees throughout this process. We have worked closely with our
customers and partners as well and look forward to building on our
pipeline and increasing sales as we emerge. We plan to continue our
momentum as we enter the next chapter in our history, and I look
forward to working with the entire Fusion team to find additional
ways to deliver value for our customers. I’m confident that
the future is bright for Fusion.”
In
connection with the Company’s emergence, a new Board,
consisting of the following individuals, has been
appointed:
●
Timothy J. Bernlohr
– Founder and Managing Member, TJB Management Consulting,
LLC
●
Kevin Brand –
Interim Chief Executive Officer; President and Chief Operating
Officer
●
Andy Fishman
– Managing Director, Vector Capital
●
Wayne Rehberger
– Director, QTS Realty Trust
●
Dudley R. Slater
– Industry Advisor, EQT
●
Paul H. Sunu
– Former Chief Executive Officer, FairPoint
Communications
●
Ilya Voytov –
Head of Research, Credit Strategy, Vector Capital
Mr.
Brand continued, “This process represented a collaborative
and solutions-oriented partnership with our creditors through which
Fusion has achieved a more sustainable capital structure. We are
proud to have the support of our former lenders, who are now
Fusion’s new owners, and Fusion is even better positioned to
deliver our comprehensive portfolio of innovative single-source
technology solutions while providing strong support for our
customers and partners.”
A copy
of the Confirmation Order and associated Plan can be found in the
Current Report on Form 8-K filed with the Securities and Exchange
Commission on December 27, 2019. Information about the bankruptcy
cases can be found by visiting https://cases.primeclerk.com/Fusion.
About Fusion
Fusion, a leading provider of integrated technology solutions, is
the single source for communications, managed network and cloud
services. Fusion’s advanced, proprietary services platform
and national footprint enable the integration of leading-edge
solutions, including Unified Communications, SD-WAN and
Connectivity for businesses of all sizes, regardless of location.
Our innovative, yet proven technology solutions lower our
customers’ cost of ownership and deliver new levels of
security, flexibility, scalability and speed of deployment. For
more information, please visit
www.fusionconnect.com.
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Cautionary Statements Regarding Forward-Looking
Information
Certain statements in this Press Release constitute
"forward-looking statements" within the meaning of Section 27A of
the Securities Act and Section 21E of the Securities Exchange Act
of 1934, as amended (the "Exchange Act"). Statements that are not
historical fact are forward-looking statements. Certain of these
forward-looking statements can be identified by the use of words
such as "believes," "anticipates," "expects," "intends," "plans,"
"projects," "estimates," "assumes," "may," "should," "could,"
"shall," "will," "seeks," "targets," "future," or other similar
expressions. Such forward-looking statements involve known and
unknown risks, uncertainties and other important factors and the
company's actual results, performance or achievements could differ
materially from future results, performance or achievements
expressed in these forward-looking statements. Such statements
include, but are not limited to, statements relating to:
management's strategy, plans, opportunities, objectives,
expectations, or intentions. and descriptions of assumptions
underlying any of the above matters and other statements that are
not historical fact.
These forward-looking statements are based on the Company’s
current beliefs, intentions and expectations and are not guarantees
or indicative of future performance, nor should any conclusions be
drawn or assumptions be made as to the outcome of any potential
transactions or strategic initiatives the Company considers.
Important assumptions and other important factors that could cause
actual results to differ materially from these forward-looking
statements include, but are not limited to, those factors, risks
and uncertainties described in more detail in the risk factors set
forth in Exhibit 99.3 to Fusion’s Current Report on Form 8-K
filed on July 2, 2019 with the Securities and Exchange Commission
(the “SEC”) and other filings with the
SEC.
Although the company believes that the assumptions underlying the
forward-looking statements are reasonable, any of the assumptions
could be inaccurate, and therefore any of these statements may
prove to be inaccurate. In light of the significant uncertainties
inherent in the forward-looking statements included herein, the
inclusion of such information should not be regarded as a
representation by the Company or any other person that the results
or conditions described in such statements or the Company's
objectives and plans will be achieved. These forward-looking
statements speak only as of the date such statements were made or
any earlier date indicated, and the Company does not undertake any
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events, changes in
underlying assumptions or otherwise. If the Company were in any
particular instance to update or correct a forward-looking
statement, investors and others should not conclude that the
Company would make additional updates or corrections
thereafter.
Fusion Contact
Brian Coyne
pr@fusionconnect.com
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