US court approves GCX restructuring plan
"Global Cloud Xchange announced that the United States Bankruptcy Court for the District of Delaware has confirmed the Company's Plan of Reorganization, clearing the way for GCX to successfully complete its Chapter 11 financial restructuring," GCX said in statement.
According to the restructuring plan, the company faced uncertainty relating to the refinancing of the USD 350 million Senior Secured Notes and RCom has not been meeting its obligations resulting in RCOM owing GCX and its subsidiaries approximately USD 145 million.
Debt-ridden RCom is currently going through insolvency proceedings in India.
"Upon its emergence from Chapter 11 following regulatory approval, GCX will be an independent company backed by the strong ownership of its existing senior secured noteholders. The Company will have reduced its debt by USD 150 million and gained access to new working capital to further its strategic plan for the benefit of its employees, customers and business partners," GCX said.
Under the reorganisation plan, the consenting senior secured noteholders will carry only a proportion of their USD 366 million debt into a USD 200 million second lien facility, reducing their headline debt by over USD 150 million, GCX said.
Further, the reorganisation plan will provide liquidity to GCX to meet its capital requirement to run the business, according to the reorganisation plan note of the company.GCX on September 15 announced that it has initiated a voluntary case under Chapter 11 of the United States Bankruptcy Code to effectuate the plan while continuing to serve its customers as usual. PRS MR
(This story has not been edited by Business Insider and is auto-generated from a syndicated feed we subscribe to.)
- A Google recruiter says he discovered he'd lost his job after a call with one of his candidates suddenly disconnected
- A Google employee of 11 years says he and his wife stared at each other in 'disbelief' when they realized they'd both been laid off by the company
- A Google engineer of 8 years says his 'spidey-senses' detected incoming layoffs — and felt 'isolated' when his 'faceless' severance email arrived
- US industry urges FM to rationalise, simplify direct and indirect taxes in India
- India issues notice to Pak seeking review, modification of Indus Waters Treaty
- Locals protest in Joshimath against slow pace of efforts to save town
- Cyber criminals syndicate operating from China and Dubai unearthed, had cheated 11,000
- Bank unions defer Jan 30-31 strike