23 May 2018
| Alan Burkitt-Gray
Three groups have been shortlisted as final bidders for Global Cloud Xchange (GCX), the international subsea network that also has enterprise and data centre operations in India.
The final bids were originally due in last week, but GCX has
delayed the process until the future of its current owner,
Reliance Communications (RCom), is settled.
Capacity understands that GCX is now looking at a date
for clarity about its future at the beginning of July, though
RCom is likely to take until August to sort out its own future.
However, GCX is ring-fenced from RCom, and the futures of both
are being decided separately.
Sources close to RCom and GCX said that all three final bidders
for GCX support its Eagle project to build a new
cable from Mumbai via the Middle East to Italy, and from
Mumbai to Hong Kong. The Middle East is a particular focus of
the Eagle project, announced in November 2017.
Sources said that the active parties interested in GCX include
one carrier, one private equity group and one combination of
both. Of the three, one is interested solely in GCX but the
other two are also interested in the data centre and enterprise
business. Sistema is not involved in any of the parties, confirming Indian reports last
As Capacity reported yesterday,
the future of RCom is in the hands of India’s
National Company Law Tribunal (NCLT), which has appointed three
administrators – called interim resolution
professionals – for each of three parts of the RCom
domestic business in India.
Separately, RCom is negotiating a settlement of its debt to
Ericsson, which applied for RCom to be put into bankruptcy.
Ericsson is an unsecured creditor, and RCom is trying to ensure
secured and unsecured creditors are treated equally.
RCom is attempting to reduce its debt by selling its valuable
spectrum, switches, towers and fibre in India to the unrelated
mobile operator Reliance Jio, and its real estate interests to
a consortium of Chinese banks. If this process goes through it
should result in RCom’s debt being reduced from $7
billion to $2 billion.
Global Cloud Xchange,