GTT Communications Inc. said that it plans to file a pre-packaged bankruptcy after it closes the sale of its infrastructure division in the coming weeks, WSJ Pro Bankruptcy reported. The cloud-networking provider on Thursday said it plans to file for bankruptcy in the U.S. Bankruptcy Court for the Southern District of New York. The company said that its foreign businesses and operations outside the U.S. won’t be part of the filing and are unlikely to be affected by the chapter 11 cases. GTT said that it has struck a restructuring support agreement with a majority of its secured and unsecured debtors and I Squared Capital. GTT is expecting to sell its infrastructure division to I Squared Capital, as it seeks to repay its secured debt. The sale and the transactions related to the restructuring support will reduce GTT’s debt by roughly $2.8 billion, the company said. GTT last year agreed to sell the infrastructure division for $2.15 billion. GTT said that its business is operating as usual both in the U.S. and globally, as it has access to enough liquidity to operate its businesses. With the support of lenders, the company said it will retain additional amounts from the sale proceeds to further strengthen its cash position. Vendors, employees and other parties will continue to be paid in the ordinary course of business, it added.
