Company terminates sale process, schedules final hearing in its Chapter 11 restructuring for 4 December 2019
NEW YORK--(BUSINESS WIRE)--Global Cloud Xchange (“GCX” or the “Company”) today announced that, after completing the initial phase of its previously announced sale process, the Company has decided that the best way to maximize value and position its businesses for long-term growth and success is through a standalone Plan of Reorganization (the “Plan”). Under the terms of the proposed Plan, which was first announced on 15 September 2019 with support from more than 75 percent of the Company's lenders, GCX will reduce debt by $150 million, access new working capital and emerge as an independent company backed by the strong ownership of its existing senior secured noteholders.
Following its decision to move forward as a standalone company, GCX has terminated the sale process. A hearing to gain the Court’s confirmation for the standalone Plan is scheduled for 4 December 2019, and the Company expects to emerge from its Chapter 11 restructuring shortly thereafter.
“While we had a responsibility to evaluate all potential opportunities, we at GCX are thrilled to move forward as an independent company supported by a group of existing lenders that believe in our team and the opportunities ahead of us,” said Bill Barney, Chairman and CEO of GCX. “We are confident this ownership structure – and the additional financial strength it provides – will allow us to continue to honor our commitments to employees, customers and suppliers, build upon our strategic plan and emerge as an even stronger company.”
Additional information is available via the Company’s restructuring website, https://cases.primeclerk.com/gcx.
GCX is advised in its restructuring by Lazard, Paul Hastings LLP and FTI Consulting, Inc.
ABOUT GLOBAL CLOUD XCHANGE
Global Cloud Xchange (GCX) offers a comprehensive portfolio of solutions customized for carriers, enterprises and new media companies. GCX owns one of the world’s largest private undersea cable system spanning more than 68,000 route kms which provides a robust Global Service Delivery Platform. With connections to 40 key business markets worldwide spanning Asia, North America, Europe and the Middle East, GCX delivers leading edge next generation Enterprise solutions to more than 160 countries globally across its Cloud Delivery Network. www.globalcloudxchange.com
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