GTT commences pre-packaged Chapter 11 bankruptcy plan

2 Nov 2021

US-based global connectivity firm GTT Communications has announced that the company and certain of its direct and indirect subsidiaries have commenced pre-packaged Chapter 11 cases in the United States Bankruptcy Court for the Southern District of New York to ‘effectuate a deleveraging of GTT’s capital structure’. GTT’s foreign businesses and operations outside of the US are not included in the filing and are unaffected by the Chapter 11 cases.

Previously, on 1 September 2021, GTT entered into a Restructuring Support Agreement (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 16 September 2021.

GTT is seeking to have the pre-packaged plan confirmed in mid-December. The combination of the recently completed infrastructure division sale and the transactions contemplated by the pre-packaged plan will reduce the company’s debt by approximately USD2.8 billion.

United States, GTT Communications