Global managed network and security service company GTT Communications claims to have successfully finished its financial reorganization process and emerged from its chapter 11 cases. GTT serves multinational enterprises worldwide. With the help of the company’s global Tier 1 IP network, the revamped business would be repositioned to concentrate on offering managed network and cloud security services to its clients.
“This marks the beginning of an important new chapter for GTT,” said Ernie Ortega, Chief Executive Officer (CEO) at GTT. “Over the past two years, we have concentrated relentlessly on transforming our business into a customer-focused, managed services provider with a culture of continuous improvement. As we begin 2023 on a new path, I’m tremendously excited about the opportunities ahead.”
Global networking and connectivity solutions, as well as Software-Defined Wide Area Network (SD-WAN) and Secure Access Service Edge (SASE) solutions, are all part of GTT’s managed services offering. The firm has released new services, such as GTT Secure Connect, which expands and fortifies network protection for companies adjusting to hybrid working environments. The company has also implemented new automation to expedite procedures and continually enhance the client experience.
“We have more exciting developments to share in the coming weeks, but right now I want to thank our employees, customers, and partners, whose confidence in GTT has underpinned our commitment to realizing this company’s incredible potential,” added Mr. Ortega. “Thanks to these stakeholders, GTT has succeeded in completing its financial restructuring with a renewed focus on customer experience, operational efficiency, and providing the best of what our industry can offer to customers and partners across the globe.”
Debt Decreased by $2.8 Bn
GTT continues to operate one of the biggest Tier 1 IP networks in the world. In order to handle a persistent, double-digit rise in customer IP traffic throughout its core IP network, which connects more than 260 locations on six continents, GTT has announced a phased 400G implementation.
GTT decreased its debt by $2.8 billion, or around 80%, through the sale of its infrastructure segment in 2021 and its financial restructuring procedure. GTT claims it is now well-positioned to continue its transformation into a “customer-focused, managed services provider delivering world-class service” to its global customer base and take advantage of opportunities for continuous operational improvement thanks to an improved capital structure and new investor leadership as a privately held company.
GTT previously announced a new board of directors for the reorganized company, including a new Chairman of the Board, Tony Abate, on April 6, 2022. Beau Harbour, Managing Director at Lone Star, and Alex Grau, Managing Director at Hudson Advisors, an investment advisor to Lone Star, have joined GTT’s Board of Directors as a result of the conclusion of GTT’s financial restructuring process.
“The company’s Board and new owners are looking forward to working with Ernie and the entire GTT team to build on the company’s momentum and our shared vision to serve businesses with network, security and communications needs across multiple locations globally,” said Tony Abate. “GTT is well-positioned to capture the growing demand for bandwidth, cybersecurity and managed services as enterprises optimize the performance of their own SaaS and cloud-based applications anywhere in the world.”
The new investor leadership is made up of affiliates managed by Lone Star Funds, Anchorage Capital Group, Fidelity Management & Research, and Cheyne Capital. These affiliates also control the majority of GTT’s restructured equity.
Akin Gump Strauss Hauer & Feld served as the restructuring’s legal counsel for GTT. Its restructuring advisor was Alvarez & Marsal North America, while its investment banker was TRS Advisors, a group inside Piper Sandler & Co.’s investment banking business.
