GTT Outlines Restructuring Plans Following Infrastructure Division Sale

Global cloud networking provider GTT Communications entered into a restructuring support agreement (RSA) with several “key” stakeholders to launch a comprehensive balance-sheet adjustment.

The news – which follows the sale of its infrastructure division to I Squared Capital for $2.15 billion – is expected to allow GTT to improve capital structure, execute long-term strategy and repay “significant” portions of secured debt. GTT now expects to work “expeditiously” to close the transaction “in the coming weeks.”

GTT is working with I Squared Capital and investors that hold the majority of its debt to implement restructuring.

Following the transaction, GTT plans to commence pre-packaged Chapter 11 cases in U.S. Bankruptcy Court in order to de-leverage its post-sale capital structure; foreign businesses and operations outside of the U.S. will not be affected.

Ultimately, GTT expects to emerge from this process with necessary regulatory approval for restructuring.

“This global agreement among each of our creditor constituencies resulted from extensive negotiations and reflects the ongoing commitment of our debtholders to the business,” said CEO, Ernie Ortega. “Our performance has been strong year-to-date, and we have a very competitive product portfolio in growing segments of the market, such as SD-WAN. To continue this momentum, we are working together with our debtholders to improve GTT’s financial health and this is a major milestone to accomplish this goal.”

Going forward, GTT will remain committed to serving national and multinational organizations with cloud-networking services across a range of wide area network (WAN) connectivity options, including Tier 1 global IP network, SD-WAN, Ethernet, MPLS, local access, SIP Trunking, security and advanced solutions.