NEW YORK, April 15, 2019 /PRNewswire/
-- Fusion (NASDAQ: FSNN), a leading provider of cloud
services, announced today that it has entered into a forbearance
agreement (the "Forbearance Agreement") with certain of its first
lien lenders holding in excess of 70% of the Company's first lien
term loans and 100% of the Company's revolving lenders.
Under the terms of the Forbearance Agreement, these first lien
lenders have agreed not to exercise the remedies available to them
related to Fusion's decision not to make its scheduled principal
payments due on April 1 and 2, 2019
and certain other defaults under the Company's credit agreement.
The Forbearance Agreement extends until April 29, 2019 unless certain specified events
occur. Further, the Company's second lien lenders are not permitted
to exercise rights or remedies against the Company for 150 days
from the date of notice of default under the terms of an
inter-creditor agreement.
As previously disclosed, Fusion is continuing to operate its
business as usual and is providing its customers and partners with
outstanding service while it completes a review of various
strategic options to preserve the value of its business and
solidify its financial footing. The Forbearance Agreement is
specifically designed to allow the Company, its first and second
lien lenders, and their respective legal and financial advisors to
continue their ongoing active discussions to evaluate these various
alternatives for the Company's capital structure and financial
position. The Company continues to pay suppliers and is funding
current operations on an ongoing basis.
Fusion will update stakeholders further when the Company's Board
of Directors has approved a specific alternative or transaction or
otherwise determined that further disclosure is appropriate or
legally required.
The Company has retained FTI Consulting and PJT Partners, Inc.
as its financial advisors and Weil, Gotshal & Manges LLP
as its legal advisor to assist the Company in analyzing and
evaluating its various alternatives with respect to its capital
structure.
About Fusion
Fusion, a leading provider of integrated cloud solutions to
small, medium and large businesses, is the industry's Single Source
for the Cloud®. Fusion's advanced,
proprietary cloud services platform enables the integration of
leading edge solutions in the cloud, including cloud
communications, contact center, cloud connectivity, and cloud
computing. Fusion's innovative, yet proven cloud 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.
Forward-Looking Statements
This press release includes forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, which are subject to risks and uncertainties. All statements,
other than statements of historical facts, are forward-looking
statements. When used in this report, the words "will," "believe,"
"intend," "expect," "may," "should," "anticipate," "could,"
"estimate," "plan," "predict," "project," "potential" or their
negatives, other similar expressions or the statements that include
those words, are intended to identify forward-looking statements,
although not all forward-looking statements contain such
identifying words. Readers are cautioned not to place undue
reliance on forward-looking statements. Forward-looking statements
include, but are not limited to: statements relating to the
Company's ability to identify, evaluate and complete any
alternative or transaction with respect to its capital structure
and financial position and to refinance or restructure its
indebtedness; the impact of the announcement of our review of such
alternatives or transactions on our business; including our
financial and operating results, or on our employees, suppliers and
customers; and the potential need to seek bankruptcy protection,
our indebtedness and the significant amount of cash required to
service our indebtedness. 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. These
forward-looking statements are based on the Company's current
beliefs, intentions and expectations. These statements are not
guarantees or indicative of future performance, nor should any
conclusions be drawn or assumptions be made as to any potential
outcome of Company's discussions with its lenders or with respect
to the capital Infusion. Although the Company believes that the
expectations reflected in the forward-looking statements are
reasonable, the Company cannot guarantee future results, levels of
activity, performance or achievements. Moreover, neither the
Company nor any other person assume responsibility for the accuracy
and completeness of the forward-looking statements. The Company
undertakes no obligation to update any of the forward-looking
statements after the date of this press release.
Fusion Contact:
Brian
Coyne
(212) 201-2404
bcoyne@fusionconnect.com
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SOURCE Fusion