Fusion Connect’s Chapter 11 Reorganization

Simpson Thacher represented Ad Hoc Group of First Lien Lenders in Fusion’s Chapter 11 Reorganization.

Goldman Sachs Lending Partners LLC, Morgan Stanley Senior Funding, Inc., MUFG Union Bank, N.A. and East West Bank, represented the First Lien Revolving Lenders and Term Lenders under a prepetition credit facility of Fusion Connect Inc. (collectively with certain of its subsidiaries, “Fusion”), in connection with Fusion’s chapter 11 restructuring, which was consummated pursuant to a plan of reorganization on January 14, 2020.

In addition to receiving their pro rata share of a restructured debt facility and substantially all of the reorganized equity, Fusion issued a Secured Deficiency Note for the sole benefit of the First Lien Revolving Lenders, which entitles them, consistent with their prepetition priority rights, to receive value and other rights attributable to a $25 million receivable held by Fusion.

Fusion, a leading provider of integrated technology solutions, is the single source for communications, managed network and cloud services. Fusion’s advanced, proprietary services platform and national footprint enable the integration of leading-edge solutions, including Unified Communications, SD-WAN and Connectivity for businesses of all sizes, regardless of location. Fusion’s innovative, yet proven technology solutions lower our customers’ cost of ownership and deliver new levels of security, flexibility, scalability and speed of deployment.

The Simpson Thacher team included Sandy Qusba (Picture), Soogy Lee, Edward Linden and Jamie Fell (Restructuring and Bankruptcy); Jon Pall and Shenlu Xu (Banking and Credit); and Rob Holo (Tax).

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.

Involved fees earner: Ao Chen – Davis Polk & Wardwell; Michael Davis – Davis Polk & Wardwell; Christian Fischer – Davis Polk & Wardwell; Jeong Lee – Davis Polk & Wardwell; James McClammy – Davis Polk & Wardwell; Xu Pang – Davis Polk & Wardwell; Nicholas Phillips – Davis Polk & Wardwell; Damian Schaible – Davis Polk & Wardwell; Adam Shpeen – Davis Polk & Wardwell; Brittany Taylor – Davis Polk & Wardwell; Jamie Fell – Simpson Thacher & Bartlett; Robert Holo – Simpson Thacher & Bartlett; Hyang-Sook Lee – Simpson Thacher & Bartlett; Edward Linden – Simpson Thacher & Bartlett; Jonathan Pall – Simpson Thacher & Bartlett; Sandeep Qusba – Simpson Thacher & Bartlett; Shenlu Xu – Simpson Thacher & Bartlett;

Law Firms: Davis Polk & Wardwell; Simpson Thacher & Bartlett;

Clients: East West Bank; Goldman Sachs Lending Partners LLC; Morgan Stanley Senior Funding, Inc.; MUFG Union Bank, N.A.;

Author: Ambrogio Visconti