GCX files for bankruptcy protection

Global Cloud Xchange (GCX), the submarine cable subsidiary of debt-laden RCom, has filed for bankruptcy protection after it missed payment on its $350 million of 7 per cent bonds that matured on August 1. The company, which has filed for protection in the United States Bankruptcy Court for the District of Delaware under Chapter 11, is also scouting for prospective buyers under a sale process.

GCX, which owns the world’s largest private sub-sea cable system, expects to complete the process within the fourth quarter of 2019. The move comes at a time when RCom, a company controlled by Anil Ambani, is facing proceedings in India under the Insolvency and Bankruptcy Code (IBC). RCom owes over ₹40,000 crore to lenders and has shut down its mobile services.