Cloud Networking Provider GTT Communications Files for Bankruptcy

GTT Communications will file a bankruptcy case after completing the previously announced sale of its infrastructure segment to Miami-based I Squared Capital. GTT and several of its subsidiaries will file their case in the United States Bankruptcy Court for the Southern District of New York when the $2.15 billion transaction closes.

The organization expects to be able to continue operating after filing for Chapter 11 bankruptcy, often known as ‘reorganization.’ GTT Communications has entered into a so-called 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.

GTT’s international activities and companies outside of the United States are not included in the proposed file and will be unaffected by the chapter 11 lawsuits. After receiving the required governmental permissions for the reorganization, the company intends to exit from this procedure.

GTT continues to operate and serve its clients in the United States and across the world. Vendors, workers, and other partners will be paid in the usual course of business for commitments made before and after the anticipated chapter 11 proceedings begin, according to the RSA. The company has adequate liquidity to operate its activities, and it plans to keep extra revenues from the transaction to enhance its financial position with the help of its lenders.

Growing Segment: SD-WAN

Photo Ernie Ortega, Chief Executive Officer (CEO) of GTT
“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,” said Ernie Ortega, Chief Executive Officer (CEO) of GTT.

“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 Ernie Ortega, Chief Executive Officer (CEO) of GTT. “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.”

“I would like to thank our GTT team for continuing to deliver outstanding services to our valued clients and our Board of Directors for its steadfast support,” added Mr. Ortega. “I would also like to express my utmost gratitude to our customers and valued partners around the globe with whom we are honored to work.”

Going ahead, the company’s objective is to continue to provide “market-leading” cloud networking services to national and international companies across a wide variety of wide area network connectivity choices. This includes GTT’s Tier 1 global IP network, SD-WAN, Ethernet, MPLS, and local access, as well as worldwide SIP Trunking, security, and advanced solutions services.

GTT’s legal counsel in connection with the restructuring is Akin Gump Strauss Hauer & Feld LLP. Alvarez & Marsal North America, LLC serves as its reorganization advisor while TRS Advisors, a group within the investment banking division of Piper Sandler & Co., serves as its investment banking business for the restructuring.

Further information related to the restructuring is available here.

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