Company initiates voluntary, pre-packaged Chapter 11 restructuring with support from more than 75 percent of lenders.
Proposed plan of reorganization positions the Company to aggressively pursue growth and development with $150 million in bond debt reduction, new working capital financing and strong new ownership.
NEW YORK, 24 September 2019: Global Cloud Xchange (“GCX” or “the Company”) today announced that Bill Barney, CEO of Reliance Communications (“RCOM” or “corporate parent”) and Chairman & CEO of Global Cloud Xchange has resigned his RCOM role to focus full time at the helm of GCX during its corporate restructuring process.
“It has been an honor to be entrusted with the leadership of RCOM over the past three years,” said Bill Barney. “With GCX’s recent voluntary Chapter 11 filing, it will be in the best interest of both RCOM and GCX for me to step down at this time to focus on GCX restructuring. Upon emergence from this process, GCX expects to be well-positioned to aggressively pursue our business plan independent of the overhang caused by our corporate parent’s challenges.”
At the time of GCX’s announcement last week, more than 75 percent of the Company’s lenders have already committed their support for the Plan, which outlines the terms for a transaction through which GCX’s senior secured noteholders would become owners of the Company and provide new loans to support and grow the business. To ensure GCX maximizes value for its stakeholders in this process, the Company also will use the protections and framework of Chapter 11 to undertake a sale process that welcomes additional prospective buyers. GCX expects to complete the Chapter 11 process and emerge as a stronger company within the fourth quarter of 2019, subject to all required regulatory approvals.
Additional information is available via GCX’s restructuring website, https://cases.primeclerk.com/gcx.
ABOUT GLOBAL CLOUD XCHANGE
Global Cloud Xchange (GCX), a subsidiary of Reliance Communications, offers a comprehensive portfolio of solutions customized for carriers, enterprises and new media companies. GCX owns the world’s largest private undersea cable system spanning more than 68,000 route kms which, seamlessly integrated with Reliance Communications’ 200,000 route kms of domestic optic fiber backbone, 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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