Reliance Communications (RCom) on Wednesday mentioned its wholly owned subsidiary International Cloud Xchange (GCX), which has filed for chapter safety in a U.S. court docket, was planning to scale back its bond debt by $150 million.
“GCX has announced a pre-packaged plan of reorganisation to support its long-term growth and development by reducing bond debt by $150 million, providing a permanent capital structure that includes working capital facility and transitioning the business to new ownership,” the corporate mentioned in a submitting with the exchanges.
New loans to agency
Underneath the brand new plan, GCX’s senior secured be aware holders would develop into house owners of the corporate and supply new loans to help and develop the enterprise. GCX, that owns one of many world’s largest non-public sub-sea cable techniques, filed for chapter safety in a U.S. court docket on September 15 after it missed funds on its $350 million of seven% bonds that matured in August this yr.
“Upon emergence from this process, the company expects to be well-positioned to aggressively pursue its business plan independent of the overhang caused by its corporate parent’s challenges,” GCX mentioned, including that greater than 75% of the corporate’s lenders have already dedicated their help for the plan.
To make sure GCX maximises worth for its stakeholders on this course of, the corporate may also use the protections and framework of Chapter 11 to undertake a sale course of that welcomes further potential patrons. GCX expects to finish the Chapter 11 course of and emerge as a stronger firm inside the fourth quarter of 2019.
“We appreciate the strong collaboration with our lenders, which has resulted in a plan of reorganisation that allows us to honour our commitments to employees, customers and suppliers,” mentioned Invoice Barney, chairman and CEO, GCX.