GTT Communications, Inc., a global cloud networking provider to multinational clients, announced yesterday that the company and certain of its direct and indirect subsidiaries have commenced pre-packaged chapter 11 cases in the U.S. Bankruptcy Court for the Southern District of New York to effectuate a deleveraging of GTT’s capital structure, according to a press release. GTT’s foreign businesses and operations outside of the U.S. are not included in the filing and are unaffected by the chapter 11 cases. GTT on Sept. 1 entered into an RSA with key stakeholders, including holders of a majority of its secured and unsecured debt and I Squared Capital, to implement a comprehensive restructuring of the company’s balance sheet following the sale of its infrastructure division to I Squared Capital. The sale closed on September 16, 2021. Subsequent to executing the RSA and the closing of the sale, GTT solicited acceptances of its pre-packaged plan, which received support from its debtholders. Lenders holding over 88% of the aggregate outstanding principal amount of GTT’s secured loans and holders of over 88% of the aggregate outstanding principal amount of GTT’s 7.875% Senior Notes due 2024, including all lenders and noteholders that voted on the pre-packaged plan, voted to accept. The company is seeking to have the pre-packaged plan confirmed in mid-December.
