DISTRESSED DAILY: Fusion Connect Faces Debt Trouble Once Again

Telecommunications company Fusion Connect is facing debt problems less than two years after exiting bankruptcy, according to S&P Global Ratings.

The Atlanta-based company, which provides cloud computing services and network management, has asked its first-lien lenders to swap into new debt and offered a mix of cash and convertible stock, S&P said in a Dec. 15 note cutting its credit rating.

Fusion exited bankruptcy in January 2020 with about $115 million in new debt, after cutting about $400 million. Its operations have remained weak since Chapter 11 due to increased competition and higher customer turn over, which has results in ...