Reliance Communication’s undersea cable unit GCX files for bankruptcy

Reliance Communications’ subsidiary Global Cloud Xchange Limited (GCX) has filed for bankruptcy in the US. GCX said in a statement that it has initiated voluntary, pre-packaged Chapter 11 restructuring with support from over 75 per cent of lenders. “GCX today announced a pre-packaged plan of reorganization that will support its long-term growth and development by reducing bond debt by USD 150 million, providing a permanent capital structure that includes working capital facility and transitioning the business to new ownership. The company has initiated a voluntary case under Chapter 11 of the United States Bankruptcy Code to effectuate the plan…,” GCX said in a statement.

GCX, which owns private undersea cable system spanning more than 68,000 route kms, is a subsidiary of Reliance Communications, and offers portfolio of solutions customised for carriers, enterprises and new media companies. “More than 75 per cent 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,” GCX statement said.