Looks like Fusion Connect has a lot to celebrate this holiday season.
The company filed chapter 11 bankruptcy this summer after its acquisitions of MegaPath and Birch Communications’ cloud and business-services business failed to meet performance projections. On Tuesday, the U.S. Bankruptcy Court approved the company’s proposed restructuring plan, allowing it to stay on track with its plans to exit chapter 11 by year’s end.
In October, Fusion said it wants to continue doing business with all of its partners and offered them new agreements. The company’s lenders will own the business when it emerges from bankruptcy.
Michael Fair, Fusion’s senior vice president of channels and alliances, tells Channel Partners this approval will “allow us to advance on a clear and concrete path forward and position us well to invest in our future.”
“While there are a few remaining steps, the successful outcome of the hearing today is one of the final milestones on our journey toward emergence, which we continue to anticipate to occur at the end of this year as previously communicated,” he said.
An important element of the court’s approval was the additional exit financing commitment Fusion received from its first lien holders, Fair said.
“This additional financing, combined with the debt we have been able to eliminate as a result of this process, leaves us with an overall debt balance of less than half of our pre-bankruptcy levels,” he said. “This extremely positive news is an indication of our lenders’ confidence in our future and a recommitment to Fusion. The additional financing will also give us the flexibility to invest in initiatives that will position us well for future growth. Work continues to evolve the leadership team and to select the new board of directors. We will keep the channel up to date on progress as plans progress.”
Fusion’s partners are key to the company’s success, and “it has been their confidence and trust in the Fusion team that has helped us arrive at this positive moment in our company’s history,” Fair said.
“We are gratified that the court has approved our plan and we believe that it will help us invest in the programs and initiatives that will help us compete, grow and succeed together in the future,” he said. “Soon after the new year, we will be outlining improvements in the channel program, including increased incentives for our strategic UCaaS, SD-WAN, managed network and security solutions, and improvements in support and service delivery that will make it easier than ever before to do business with Fusion.”