Cloud networking services provider GTT Communications, Inc. says it has filed what it termed “prepackaged” Chapter 11 cases on behalf of itself and some of its direct and indirect subsidiaries. The filings, in the United States Bankruptcy Court for the Southern District of New York, do not pertain to the company’s foreign businesses and other operations outside of the U.S. The filings follow the announcement September 1 that the company had reached a restructuring support agreement (RSA) with key stakeholders; these filings are necessary to execute the RSA and a complementary “Prepackaged Plan” that GTT says will result in a $2.8 billion reduction in the company’s debt.
After a string of company and infrastructure acquisitions over the last several years (see, for example, “GTT Communications to buy Europe's Interoute for $2.3 billion” and “GTT to develop non-incumbent network footprint with ACI acquisition”), GTT agreed to sell many of these infrastructure assets to I Squared Capital in a deal that closed September 16 (see “GTT closes Infrastructure Division sale, buyers rename it EXA Infrastructure”). The funds from the sale represent most of the $2.8 billion debut reduction. Other transactions are contemplated under the Prepackaged Plan, but GTT did not publicly comment on what those would be. After successfully soliciting support for the Prepackaged Plan for its major debt holders, the company says it expects to have the plan confirmed in the middle of next month.
GTT adds that vendors, employees, and other partners will be paid in the normal course of business while the Chapter 11 cases proceed.
“I am pleased by the support we’ve received from our debt holders and other stakeholders demonstrating their confidence in the company’s business plan and long-term strategy,” said Ernie Ortega, CEO of GTT. Following the entry into the RSA, we closed the sale of our infrastructure division, and repaid a significant portion of our secured debt, as we said we would. Commencing the company’s Chapter 11 cases is the next major milestone that enables us to further strengthen our financial position as we continue to operate our business around the world.”
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About the Author
Stephen Hardy
Editorial Director and Associate Publisher, Lightwave
Stephen Hardy is editorial director and associate publisher of Lightwave and Broadband Technology Report, part of the Lighting & Technology Group at Endeavor Business Media. Stephen is responsible for establishing and executing editorial strategy across the both brands’ websites, email newsletters, events, and other information products. He has covered the fiber-optics space for more than 20 years, and communications and technology for more than 35 years. During his tenure, Lightwave has received awards from Folio: and the American Society of Business Press Editors (ASBPE) for editorial excellence. Prior to joining Lightwave in 1997, Stephen worked for Telecommunications magazine and the Journal of Electronic Defense.
Stephen has moderated panels at numerous events, including the Optica Executive Forum, ECOC, and SCTE Cable-Tec Expo. He also is program director for the Lightwave Innovation Reviews and the Diamond Technology Reviews.
He has written numerous articles in all aspects of optical communications and fiber-optic networks, including fiber to the home (FTTH), PON, optical components, DWDM, fiber cables, packet optical transport, optical transceivers, lasers, fiber optic testing, and more.
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