Business

C1 Strikes Deal with Lenders to Slash Debt by 80% and Propel Business Transformation

BLOOMINGTON, Minn., April 4, 2024 /PRNewswire/ -- In a strategic move aimed at reshaping its financial structure and fuelling company growth, the advanced technology firm C1 today declared its entry into a critical agreement with a majority of its creditors and stakeholders. This pivotal agreement earmarks the slashing of its debt burden by an astonishing 80% while additionally injecting $245 million in fresh equity commitments. This significant financial recalibration is poised to substantially enhance the company's liquidity reserves, providing a solid foundation for future ventures and market share expansion.

Jeffrey S. Russell, the visionary Chief Executive Officer leading C1, expressed satisfaction with the newly reached accord, emphasizing the boost it will generate for the company's operational resilience. "Through this agreement, we aim to bolster our business structure, enabling continued prowess in our service delivery for customers and partners," Russell stated. Over the past months, C1 has engaged in a comprehensive organizational shift, driving actions aimed at anchoring the brand as a market leader in the realm of technology solutions. Under the banner of 'One C1,' the enterprise has its eyes set on harnessing and maximizing its collective potential. Russell outlined the company's focus on debt reduction, liquidity enhancement, and investing in imminent growth opportunities to seize a larger stake in the market.

Russell further commented, "The vote of confidence from our stakeholders in C1's strategy is a reflection of our dedicated, result-oriented team and the robust partnerships we enjoy that facilitate cutting-edge modernization and innovative solutions for our clientele." He highlighted the company's impact in diverse areas, including navigating patients to premier healthcare facilities, equipping students with digital learning tools, and crafting tailored experiences in the hospitality sector.

C1 has initiated a prepackaged Chapter 11 case within the United States Bankruptcy Court for the Southern District of Texas to expedite the financial restructuring process. The company reassures that its operations will go uninterrupted and customer services will remain at peak levels of excellence throughout this period. C1's strong liquidity position is backed by firm commitments from a significant proportion of its stakeholders, including the incumbent sponsor CVC Capital Partners as well as Silver Point Capital and Monarch Alternative Capital, among others. These entities have pledged new equity and debt financing solutions, which are pending Court approval and will be availed to endorse the company during and post-restructuring. C1 has also expressed intentions to fully compensate vendors involved in the Chapter 11 proceedings.

Expedient Restructuring and Unwavering Commitment to Operations

C1 has proceeded to file an array of standard 'first day' motions to maintain seamless operations during the financial restructuring stage. The motions aim to enable a smooth transition and minimize any potential disruptions to daily business activities.

For those seeking further details on C1's financial restructuring process, comprehensive information is provided at the dedicated domain C1neXt.com. Additionally, documentation related to Court filings and the claims procedure is available at Epiq's website. Epiq, serving as the claims and noticing agent, can be contacted through the toll-free number 877-295-6914 in the U.S. or +1-971-290-2761 for international queries. Email correspondence can be directed to the email address found on the Epiq website.

Strategic Advisory and the Path Forward

C1 has enlisted the services of preeminent legal counsel White & Case LLP, renowned investment bankers Evercore Group, L.L.C., and the astute financial advisors of AlixPartners LLP to guide its trajectory through this financial restructuring phase.

C1: A Global Provider Elevating the Connected Experience

Engineered to transcend the ordinary, C1 stands as a global testament to technology solutions that foster enduring human connections. With its commitment to impactful innovations and seamless, secure experiences, the company has successfully established itself as an essential fixture for over 6,000 customers who employ C1's services daily. The enterprise boasts a thriving collaborative network with premier industry partners, including the Fortune 1000 companies and various public sector entities, delivering holistic solutions encompassing a full lifecycle approach.

C1 takes pride in its workforce, comprising more than 1,000 highly skilled engineers across North America and India, amassing a plethora of industry certifications and operating three Customer Success Centers. Further insights into the company and its endeavors can be discovered at onec1.com.

Steering Through Future Prospects

Included in this announcement are "forward-looking statements," in accordance with the Private Securities Litigation Reform Act of 1995. These statements foresee potential developments and future activities that may shape the trajectory of the company. Such insights offer a glimpse into possible financial results, intended motions within the Chapter 11 case, and the aspirations for continuous operations and engagement with clientele and suppliers during this period.

These forward-looking statements encapsulate a breadth of scenarios indicative of C1's nomological road ahead, focusing on the fluidity of operational funding during the Chapter 11 proceedings, anticipated legal endorsements, the fruition of proposed transactions post-Court approval, and the finality of financial results. They also emphasize the anticipated sway in credit ratings and the capability of the firm to navigate the restructuring process while meeting creditor requirements.

It is important to bear in mind, however, that these statements represent projections based on current expectations and known and unknown risks. Factors such as creditor actions, liquidity maintenance, Bankruptcy Court decisions, and the actualization of proposed transactions could potentially alter the expected course. These forward-looking statements should not be considered as guarantees of future performance, and C1 underscores that any aforementioned forecasts are subject to revision based on new information or changing financial conditions.

Contact and Media Relations

Inquiries and communication regarding C1 can be directed to the Media Relations Manager, Kim Espinosa, through the provided email address found on the Epiq website. Additionally, Joele Frank, Michael Freitag, Viveca Tress, and Carleigh Roesler are available for further information and can be reached at 212-355-4449.

In a remarkable corporate turnaround, C1's alignment with its lenders reflects a determined pursuit to recalibrate its financial bearings and invest in the company's burgeoning phase of transformation. The announcement heralds a pivotal moment for the technology solutions provider, as it continues to garner the support of partners and stakeholders in navigating the ever-evolving market landscape. With these strategic decisions, C1 aims to leverage its renewed financial vigor to further entrench its status as a leader in creating connected, human-centric experiences, striving toward greater heights of innovation and customer satisfaction.

Readers should conclude that this press release, encapsulating forward-looking statements, is permeated with C1's aspirations and calculated predictions for a prosperous future. As the company embarks on this financially prudent journey, it attunes itself to the market's dynamism and the accompanying uncertainties, forging a path that remains true to its mission while adapting to the exigencies of a competitive industry.

This news article has been compiled and reviewed to ensure the highest accuracy possible, using the latest information from C1's strategic restructuring announcement.

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