Cloud Provider Fusion Ends Bankruptcy, Cutting $400M of Debt (1)

Cloud services provider Fusion Connect has emerged from its Chapter 11 bankruptcy case, erasing about $400 million of debt through reorganization.

A $115 million exit loan, provided by existing lenders, bolstered the New York-based company’s balance sheet, it said in a statement Tuesday.

The reorganization plan, which was approved by the U.S. Bankruptcy Court for the Southern District of New York on Dec. 17, 2019, provides Fusion with “a sustainable capital structure,” the company said.

Under the plan, senior secured creditors will get ownership of the reorganized company. Their interests will be worth between 60% to 76% of their claims, ...