Davis Polk advised an ad hoc group of lenders under Fusion Connect, Inc.’s prepetition secured first-lien credit facility in the chapter 11 restructuring of Fusion Connect, Inc. and certain of its subsidiaries (collectively, “Fusion”). On January 14, 2020, Fusion emerged from chapter 11 under the terms of its plan of reorganization (the “Plan”) confirmed by the United States Bankruptcy Court for the Southern District of New York on December 17, 2019.

At the outset of Fusion’s chapter 11 cases, members of the ad hoc group and certain other lenders entered into a restructuring support agreement with Fusion and provided a $59.5 million debtor-in-possession credit facility. Upon effectiveness of the Plan, the full balance of the DIP facility was paid in cash with the proceeds of a new $115 million exit facility provided by certain first-lien lenders. In addition, the prepetition first-lien lenders received (i) 97.5% of the equity interests in the reorganized Fusion in the form of common stock and special warrants and (ii) $225 million of second-lien takeback loans.

Fusion, a leading provider of integrated cloud solutions to businesses of all sizes, 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 also provides residential telecommunications services to customers in Canada.

The Davis Polk restructuring team included partner Damian S. Schaible, counsel Christian Fischer and associates Adam L. Shpeen and Xu Pang. The finance team included partner Jeong M. Lee and associates Ao Chen and Brittany Taylor. The corporate team included partner Michael Davis and associate Nicholas C. Phillips. The litigation team included partner James I. McClammy. All members of the Davis Polk team are based in the New York office.     

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