US-based global connectivity firm GTT Communications has confirmed that it has entered into a Restructuring Support Agreement (RSA) with key stakeholders, including holders of a majority of its secured and unsecured debt. These stakeholders include I Squared Capital, which is poised to close the previously announced acquisition of GTT’s infrastructure division ‘in the coming weeks’.
Following the close of the sale of the infrastructure division, GTT and certain of its direct and indirect subsidiaries intend to commence pre-packaged Chapter 11 cases in the US Bankruptcy Court for the Southern District of New York to ‘effectuate a deleveraging of GTT’s post-sale capital structure’. GTT’s foreign businesses and operations outside of the US are not included in the contemplated filing and will be unaffected by the Chapter 11 cases.
The combination of the infrastructure division sale and the transactions contemplated by the RSA will reduce the company’s debt by approximately USD2.8 billion.