McLean Company expects to operate without interruption
McLean-based telecommunications company GTT Communications Inc. announced this week that the company and some affiliates have filed for Chapter 11 prepackaged files.
The closing of GTT’s estimated $ 2.15 billion sale of its infrastructure division to Miami-based I Squared Capital on September 16, allowed GTT to advance its Wisconsin Bankruptcy cases, which it- even and some subsidiaries have filed with the US Bankruptcy Court for the Southern District of New York. A Chapter 11 filing, or a “reorganization” bankruptcy, allows the business to continue to operate its business. GTT’s operations outside of the United States are not included in the dossier and are not affected.
On September 1, GTT concluded a risk self-assessment (RSA) with stakeholders, including the holders of a majority of its secured and unsecured debt and I Squared Capital, to restructure its balance sheet.
The completion of the prepackaged plan, which the cloud network service provider aims to have confirmed in mid-December, and the sale of its infrastructure division will reduce GTT’s debt by around $ 2.8 billion, according to A press release.
“I am delighted with the support we have received from our creditors and other stakeholders demonstrating their confidence in the business plan and long term strategy of the company,” said GTT CEO Ernie Ortega in a communicated. “Following entry into RSA, we closed the sale of our infrastructure division and repaid a significant portion of our guaranteed debt, as we had announced. Starting the Chapter 11 corporate cases is the next important step that allows us to further strengthen our financial position as we continue to operate our business around the world.
The RSA agreement provides for payment to suppliers, employees and other partners for costs incurred in the ordinary course of business, and the company said it has sufficient cash to operate its business.