The service provider Fusion announced this week that it has completed its financial restructuring and emerged from the bankruptcy process. The company filed for Chapter 11 back in June of last year, barely a year after buying Birch and Megapath and a month after getting approval for their plan.
The company emerges with $400M less debt, no pesky public shareholders, and $115M in financing by some of the company’s first lien lenders. They do so with COO Kevin Brand at the helm as interim CEO, and a new board of directors.
Now all they need to do is build a successful business out of the dozens of assets Birch and others acquired over the prior decade, the largest lump of which is probably Cbeyond. The transition from CLEC to cloud-based managed services has been a bumpy one for most that have tried it, and Fusion is no different.
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Categories: Financials · Managed Services · Uncategorized
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originally had $691M in debt — so down to $291M. They were at $560M in revenue. No idea what it is now.
Green Junior, who controlled the holding company that owned about 61% of Fusion – is he still an owner?
Based on the financial forecast posted during the bankruptcy proceedings, revenues are projected to be $527mn in 2019 and $476mn in 2020…heavy top-line erosion difficult to halt…
While that is heavy erosion – it is consistent with what Birch had going on before the “acquisition” by Fusion. Big problems – perhaps unsolvable ones.
I believe Fusion kept only the legacy Cbeyond portion of Birch.
The legacy Birch POTS\SMB base was spun off from Fusion at the time of Birch-Fusion deal. New company is named Lingo and led by Vincent Oddo.
https://www.lingo.com/2019/02/11/lingo_acquires_fusion_customers/
https://www.lingo.com/2019/01/07/lingo-announces-closing-of-impact-telecom-acquisition/
https://www.lingo.com/2019/01/31/lingo-announces-closing-of-sales-agreement-to-acquire-select-customers-from-momentum-telecom/
http://birchequity.com/
Lingo didn’t get all of former-Impact. Our account was with Impact and we’re now with Fusion.
They kept all the business and large account POTS, only the residential POTS and small accounts were spun off to Lingo.
They have plenty of POTs assets left. Lingo got a portion of legacy birch that for whatever reason did not go for the sale to fusion. I believe some fragment of Primus in Canada is still with Fusion.
all of Primus is sill with Fusion… for now.