GTT Communications files prepackaged Chapter 11

GTT Communications Inc. on Oct. 31 filed a prepackaged Chapter 11 in bankruptcy court in Manhattan to implement its previously announced restructuring, the company announced.

As reported, the company announced on Sept. 1 that it had entered into a restructuring support agreement, or RSA, with holders of a majority of its secured and unsecured debt, as well as with I Squared Capital in connection with the sale of its infrastructure division that was a significant part of the revamp.

The company is seeking to have the plan confirmed in mid-December. The company expects to emerge from Chapter 11 following receipt of the necessary regulatory approvals, but did not provide a timeline for those.

According to the company, lenders holding more than 88% of the aggregate outstanding principal amount of its secured loans and holders of more than 88% of the aggregate outstanding principal amount of its 7.875% senior notes due 2024, support reflecting all lenders and noteholders that actually voted on the prepackaged plan, voted to accept.

The company said that the combination of the completed infrastructure division sale to I Squared, the proceeds of which were used to pay down a significant portion of the company's debt, and the transactions contemplated by the prepackaged reorganization plan would reduce the company's debt by approximately $2.8 billion.

The company said it had "access to sufficient liquidity to operate its businesses."

Akin Gump Strauss Hauer & Feld served as the company's legal adviser, while Alvarez & Marsal North America was restructuring adviser and TRS Advisors, a group within the investment banking division of Piper Sandler & Co., was its investment banker.