FTE Networks completes debt restructuring, names Fred Sacramone CEO
FTE Networks announced that it has completed its previously announced debt restructuring. In connection with, or as a result of, the debt restructuring, the Company achieved the following objectives: The Company's Board of Directors has been reconstituted to include five new Independent members who have public company experience and business backgrounds and who will also help with industry contacts, client relationships and business development. The debt restructuring extended the debt maturities of substantially all of the Company's outstanding indebtedness, which gives the Company additional time to put a long-term debt strategy in place and has reduced the Company's cost of capital by reducing interest rates and on-going fees to lenders. In connection with the recent change of management of the Company, Fred Sacramone, the President of Benchmark Builders Inc., the Company's principal operating subsidiary, and one of the principal stockholders of Benchmark Builders prior to the sale of Benchmark Builders to the Company in 2017, was appointed the President and CEO of the company, and now has effective day-to-day management control of the company in addition to the effective day-to-day management control of Benchmark Builders. Through the issuance of a new class of Series H Preferred Stock that has perpetual voting rights equivalent to 51% of the total votes that may be cast by all outstanding shares of capital stock of the Company, Mr. Sacramone and Brian McMahon, the other principal stockholder of Benchmark Builders prior to the 2017 sale of that company to the Company, have been granted effective voting control of the Company's capital stock and the ability to elect the members of the Company's Board of Directors, subject to certain contractual rights of the Company's lenders. While additional shares of common stock were issued to the lenders under the Company's principal credit facility in connection with the debt restructuring, the Company was successful in its efforts to seek the return to the treasury of the Company of a significant number of shares of the Company's capital stock issued to prior management in 2018. The Company intends to continue its efforts to seek the return of additional shares in the future.