Following earlier efforts to sell the company, Global Cloud Xchange (GCX) 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 .
GCX owns one of the world’s largest private undersea cable system spanning more than 68,000 route kms.
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.
GCX said it hopes to emerge from Chapter 11 following a court date of December 4th.
“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.”
