GTT Communications files Chapter 11 for bankruptcy
McLean Company Plans to File After Sale of Infrastructure Division Closes
September 2, 2021
McLean-based telecommunications company GTT Communications Inc. plans to file a prepackaged Chapter 11 dossier after the previously announced sale of its infrastructure division to Miami-based I Squared Capital closes, it said. Thursday.
After the $ 2.15 billion sale closes, GTT and some subsidiaries will file a lawsuit in 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 will not be affected.
The company said it plans to continue operating without disruption. The restructuring support agreement he signed with stakeholders, including I Squared Capital, provides for payment to suppliers, employees and other partners for costs incurred in the normal course of business. GTT said it had sufficient cash to operate and that with the support of its lenders it would keep the money from the sale of the infrastructure division.
In a statement, Ernie Ortega, CEO of GTT, said: “This global agreement between each of our creditors is the result of extensive negotiations and reflects the continued commitment of our creditors to the company. … To continue [our] dynamic, we are working with our creditors to improve GTT’s financial health, and this is a major step towards achieving this objective.
Founded in 1998, GTT specializes in Internet network and level 1 cloud networking services.