Fusion Connect Inc. and each of its U.S. subsidiaries have filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York.
The company has also entered into a restructuring support agreement with lenders holding more than 66.67% of the outstanding principal amount of its first-lien loans, according to a June 3 news release. Fusion expects to emerge from Chapter 11 before the end of the year.
The company has also secured a commitment backstopped by certain first-lien lenders for a debtor-in-possession financing that provides for a "superpriority" secured credit facility of $59.5 million, including $39.5 million in new money term loans.
The Chapter 11 filing will allow the company to maintain its employee wage and benefit programs, customer and agent programs, and vendor payments for goods and services delivered in the ordinary course, subject to court approval.
Fusion is a provider of integrated cloud services to small, medium and large businesses.