B. Riley FBR analyst Josh Nichols downgraded Fusion to Neutral from Buy and lowered his price target for the shares to 75c from $9.75. The stock in premarket trading is down 77%, or 93c, to 27c after the company disclosed it would not be able to file its 2018 annual report on time due to the need for additional time to quantify the impact of Birch’s accounting errors. Fusion’s options are limited, given its financial leverage and limited access to capital, Nichols tells investors in a research note. He believes management’s ability to “salvage some residual equity value” will likely hinge on the success of its negotiations with lenders in an out-of-court restructuring. A formal Chapter 11 reorganization “appears to be a material possibility,” says Nichols.