GTT granted court approval of Prepackaged Plan
GTT has announced that the US Bankruptcy Court for the Southern District of New York has approved the company’s Prepackaged Plan.
The Prepackaged Plan allows GTT to improve its capital structure and execute its long-term business strategy according to the company.
It will reduce the firm’s debt by approximately $2.8 billion and GTT said it expects to emerge from the chapter 11 process following receipt of the necessary regulatory approvals for the restructuring.
Ernie Ortega, CEO of GTT, said, “With the court approval now behind us we are well positioned with the resources we need to push forward with our long-term growth plan.
“We are grateful for the immense support we have received from our debtholders, customers, employees, vendors and other partners during this process.”
GTT announced it would go into chapter 11 bankruptcy in September once it had completed the $2.15 billion sales of its infrastructure operations to a private equity company.
The company adds that it continues to serve its customers in the US and globally without interruption.
It insists that its employees and partners are being paid in the “ordinary course of business for obligations incurred prior to and after the commencement of the chapter 11 cases”.
The company also says it has access to sufficient liquidity to operate its businesses including the payment of all obligations.