GTT Communications Inc. (“GTT” or the “Company”), a leading global provider of managed network and security services to multinational organizations, announced today that the Company has successfully completed its financial restructuring process and emerged from its chapter 11 cases. The transformed company is repositioned to focus on providing customers with industry-leading managed network and cloud security services that leverage the company’s global Tier 1 IP network.
“Today marks the beginning of an important new chapter for GTT”
“Today marks the beginning of an important new chapter for GTT,” said Ernie Ortega, Chief Executive Officer of GTT. “Over the past two years, we have concentrated relentlessly on transforming our business into a customer-focused, managed services provider with a culture of continuous improvement. As we begin 2023 on a new path, I’m tremendously excited about the opportunities ahead.”
“We have more exciting developments to share in the coming weeks, but right now I want to thank our employees, customers, and partners, whose confidence in GTT has underpinned our commitment to realizing this Company’s incredible potential. Thanks to these stakeholders, GTT has succeeded in completing its financial restructuring with a renewed focus on customer experience, operational efficiency, and providing the best of what our industry can offer to customers and partners across the globe,” Mr. Ortega said.
GTT’s managed services portfolio includes market-leading Software-Defined Wide Area Network (SD-WAN) and Secure Access Service Edge (SASE) solutions, as well as global networking and connectivity solutions. The Company has introduced new automation to streamline processes and continuously improve the customer experience and launched new services, including GTT Secure Connect which extends and strengthens network protection for businesses adapting to hybrid working environments.
GTT also continues to operate one of the world’s largest Tier 1 IP networks and recently announced a phased 400G rollout to address a continued, double-digit increase in customer IP traffic across its core IP network, which connects more than 260 cities on six continents.
Through GTT’s sale of its infrastructure division in 2021 (the “Infrastructure Sale”) and its financial restructuring process, GTT reduced its debt by $2.8 billion, or approximately 80%. With an enhanced capital structure and new investor leadership as a privately held company, GTT stands well-positioned to continue its transformation as a customer-focused, managed services provider delivering world-class service to its global customer base and execute on continuous operational improvement opportunities.
GTT previously announced a new board of directors for the reorganized company, including a new Chairman of the Board, Tony Abate, on April 6, 2022. With GTT’s completion of its financial restructuring process, Beau Harbour, Managing Director at Lone Star, and Alex Grau, Managing Director at Hudson Advisors L.P., an investment advisor to Lone Star, have joined GTT’s Board of Directors.
“GTT is well-positioned to capture the growing demand for bandwidth, cyber-security and managed services as enterprises optimize the performance of their own SaaS and cloud-based applications anywhere in the world.”
“The Company’s Board and new owners are looking forward to working with Ernie and the entire GTT team to build on the Company’s momentum and our shared vision to serve businesses with network, security and communications needs across multiple locations globally.” Mr. Abate said. “GTT is well-positioned to capture the growing demand for bandwidth, cyber-security and managed services as enterprises optimize the performance of their own SaaS and cloud-based applications anywhere in the world.”
Affiliates managed by Lone Star Funds, Anchorage Capital Group, Fidelity Management & Research Co., and Cheyne Capital, collectively, comprise the new investor leadership and own a majority of GTT’s reorganized equity.
GTT’s legal advisor in connection with the restructuring was Akin Gump Strauss Hauer & Feld LLP. Alvarez & Marsal North America, LLC served as its restructuring advisor, and TRS Advisors, a group within the investment banking division of Piper Sandler & Co., served as its investment banker for the restructuring.