The company said it has opted for a pre-packaged Chapter 11 restructuring, which is a more streamlined version of the bankruptcy process. It has filed a proposed reorganization plan with U.S. Bankruptcy Court in Delaware.
More than 80% of those who own notes in the company, have approved of the plan, Fuse said. The road map will allow Fuse to reduce its secured debt by about $200 million while also lowering the related interest expense.
The bankruptcy news comes two weeks after the exit of the company’s longtime CEO, Michael Schwimmer. Over the past several months, Fuse was dropped by Comcast and Verizon FiOS and went into default on a loan after missing an interest payment.
Pending the final voting of noteholders and the approval of the Bankruptcy Court,