Global Cloud Xchange announces confirmation of reorganization plan

By Caroline Salls

Pittsburgh, Dec. 5 – Global Cloud Xchange’s plan of reorganization was confirmed by the U.S. Bankruptcy Court for the District of Delaware, clearing the way for the company to complete its Chapter 11 financing restructuring, according to a news release.

The company said it will be an independent company upon its emergence from Chapter 11 following regulatory approval. The reorganized Global Cloud Xchange will be backed by the ownership of its existing senior secured noteholders.

According to the release, upon emergence, the company will have reduced its debt by $150 million and gained access to new working capital to further its strategic plan for the benefit of its employees, customers and business partners.

As previously reported, Global Cloud Xchange’s senior secured noteholders will become owners of the company and provide new loans to support and grow the business.

The plan does not call for any changes in business arrangements or activities for any GCX subsidiary, and all trade/vendor claims will be paid in full.

The company is advised in its restructuring by Lazard, Paul Hastings LLP and FTI Consulting, Inc.

Global Cloud Xchange offers a comprehensive portfolio of solutions customized for carriers, enterprises and new media companies. It is based in London. The company filed bankruptcy on Sept. 15 under Chapter 11 case number 19-12031.

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