PRESS RELEASE
C1, an advanced technology and solutions company, today announced it has entered into an agreement with a supermajority of its lenders and certain other stakeholders to support ongoing efforts to invest in the transformation and growth of the business. The agreement provides for the reduction of approximately 80% of debt from the balance sheet and $245 million in new equity commitments, resulting in a significant increase in the Company’s available liquidity.
Jeffrey S. Russell, Chief Executive Officer of C1, said, “We are pleased to have reached this agreement to allow us to continue enhancing the resiliency of our business as a solutions-led company that delivers excellence for our customers and partners alike. Over the past year, we have been taking actions across the organization to help position C1 for success in the market and harness the full value of One C1. To support our ongoing efforts and ensure the Company has a strong financial foundation for the future, C1 is proactively taking steps to reduce our debt levels, strengthen our overall liquidity profile and, in turn, invest in near-term growth and grow market share.
Russell continued, “Our stakeholders’ confidence in C1 is a testament to our talented and results driven team and the power of our partnerships, which allow us to drive modernization and innovative outcomes for our customers across our security, networking and infrastructure, and connected customer experience solutions. For instance, in guiding patients to premier healthcare, empowering students with digital learning opportunities, and personalizing the guest experience for hospitality professionals.”
In order to implement the agreement on an expedited basis, C1 has filed a prepackaged Chapter 11 proceeding in the United States Bankruptcy Court for the Southern District of Texas. The Company intends to continue to operate its business in the ordinary course and serve its customers with the same excellence that they know and expect. C1 has robust liquidity, including commitments from a majority of C1’s current stakeholders, including the existing sponsor CVC Capital Partners, as well as Silver Point Capital, and Monarch Alternative Capital, among others, for new equity and debt financing. The new financing will, subject to Court approval, be available to support the Company throughout the process and in the future. C1 is seeking to pay vendors in full as part of the Chapter 11 proceeding.
Additional Information
C1 has filed a number of customary “first day” motions to continue uninterrupted operations during the financial restructuring.
Additional information regarding C1’s financial restructuring is available at C1neXt.com. Court filings and information regarding the claims process are available at https://dm.epiq11.com/c1, by calling the Company’s claims and noticing agent, Epiq, at 877-295-6914 (toll-free in the U.S.) or +1-971-290-2761 (for international calls), or by sending an email to C1-Info@epiqglobal.com.
Advisors
White & Case LLP is serving as legal advisor, Evercore Group, L.L.C. is serving as investment banker, and AlixPartners LLP is serving as financial advisor to C1.
