GTT to File Chapter 11 Bankruptcy by June 30 - Seeking Alpha

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GTT Communications likely to file for Chapter 11 bankruptcy before June 30 - report
GTT Communications, Inc. (GTT)By: Josh Fineman, SA News Editor

GTT Communications (NYSE:GTT) may file for Chapter 11 bankruptcy protection before a June 30 bond coupon is due, according to a new report.

The filing is likely to come before the sale of infrastructure assets to I Squared Capital is completed, according to a Reorg report. It also appears that the creditors overall recovery prospects have worsened due to new liabilities, specifically corporate taxes.

Earlier this week, Bloomberg reported that GTT shareholders are expected to receive nothing in the currently conceived bankruptcy plan.

In March, Bloomberg reported that GTT started formal talks about a restructuring in a potential bankruptcy filing.

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Anaajksk

TimboJones

Damn coupons.

jbiloh

Wonder how this will impact gtt transit customers.

Maounique

If they are sane people, it shouldn't, this is not very different from a takeover. Someone will take them for free and should take care of the customer base.

jackb

@jbiloh said:
Wonder how this will impact gtt transit customers.

Chapter 11 seems to often go the restructure route. Equity gets wiped and company goes private. If that succeeds, I'd suspect no impact to customers.

See INAP for a recent example.

Levi

Wait! Does this mean that cociu's debt with them can be vawed? Ooo

Maounique

I would rather bet on a takeover.
Sure, equity wiped first, more juicy for the sharks.

jackb

@LTniger said:
Wait! Does this mean that cociu's debt with them can be vawed? Ooo

His debt is to GTS

dahartigan

Would this explain the cociu involucration incident?

jbiloh

@jackb said:

@jbiloh said:
Wonder how this will impact gtt transit customers.

Chapter 11 seems to often go the restructure route. Equity gets wiped and company goes private. If that succeeds, I'd suspect no impact to customers.

See INAP for a recent example.

Gtt had been struggling with network performance for the past couple years. This won't make it better, at least in the short term.

skorupion

Chapter 11 bankruptcy should be renamed to chapter 11 restructuring

Clouvider

@jbiloh said:

@jackb said:

@jbiloh said:
Wonder how this will impact gtt transit customers.

Chapter 11 seems to often go the restructure route. Equity gets wiped and company goes private. If that succeeds, I'd suspect no impact to customers.

See INAP for a recent example.

Gtt had been struggling with network performance for the past couple years. This won't make it better, at least in the short term.

What performance issues you were observing?

For one, they have the lowest RTT across the ocean that I’ve seen.

jbiloh

@Clouvider said:

@jbiloh said:

@jackb said:

@jbiloh said:
Wonder how this will impact gtt transit customers.

Chapter 11 seems to often go the restructure route. Equity gets wiped and company goes private. If that succeeds, I'd suspect no impact to customers.

See INAP for a recent example.

Gtt had been struggling with network performance for the past couple years. This won't make it better, at least in the short term.

What performance issues you were observing?

For one, they have the lowest RTT across the ocean that I’ve seen.

It became routine that we needed to shut down our links to GTT due to performance/packet loss/etc. We have lots of links all over the place, so pretty large sample size.

Clouvider

@jbiloh said:

@Clouvider said:

@jbiloh said:

@jackb said:

@jbiloh said:
Wonder how this will impact gtt transit customers.

Chapter 11 seems to often go the restructure route. Equity gets wiped and company goes private. If that succeeds, I'd suspect no impact to customers.

See INAP for a recent example.

Gtt had been struggling with network performance for the past couple years. This won't make it better, at least in the short term.

What performance issues you were observing?

For one, they have the lowest RTT across the ocean that I’ve seen.

It became routine that we needed to shut down our links to GTT due to performance/packet loss/etc. We have lots of links all over the place, so pretty large sample size.

Interesting, we have couple dozen of 100G links to them too, across various US and European locations. We have similar number of links with Telia and our experience is completely opposite. GTT normally just works, normally has much more capacity to “hard to peer networks”, Telia on the other hand has mysterious packet loss as they connect ports through the switches for aggregation/port saving at some locations and in my opinion that sometimes causes them issues in peak time, not to mention they are often much more saturated to “hard to peer networks”

I had more issues with Level3/Century Link/Lumen (?) than I had with GTT or Telia. GTT is solid for me.

jbiloh

@Clouvider said: Interesting, we have couple dozen of 100G links to them too, across various US and European locations.

Wow that's pretty impressive, had no idea Clouvider was that large. Cool.

Falzo

@jbiloh said:

@Clouvider said: Interesting, we have couple dozen of 100G links to them too, across various US and European locations.

Wow that's pretty impressive, had no idea Clouvider was that large. Cool.

Dom be like...

Clouvider

@jbiloh said:

@Clouvider said: Interesting, we have couple dozen of 100G links to them too, across various US and European locations.

Wow that's pretty impressive, had no idea Clouvider was that large. Cool.

Not large by any means, or least we don’t feel this way, but we do like growing and through that have a decent sample to compare hence I was a little surprised, that’s all! 😉

With that said, if they have weaknesses in some locations we are not in yet but are planning to be, it’s always useful to know before signing the papers - there’s plenty of fish in that carrier sea 👍

My view on the discussion is that network and Customers are the assets in this transaction so I don’t think they will be negatively affected. I wouldn’t want to be on the other side of the stick though, that is creditor/supplier/potentially shareholder.

DP

I have Dom in my sources.list - he's everywhere.

debaser

My ISP has transit with GTT and connections through their network are usually a lot better than through Liberty Global (which handles the bulk of transit) and DTAG. N=1 here, but connectivity is not the point I guess.

GTT has however been on an acquiring spree past years and I don't think it really paid off. In The Netherlands they bought KPN International. Most of those customers just went elsewhere (usually Liberty Global) because GTT couldn't sustain the old pricing.

a-super-random-user

@thedp said: I have Dom in my sources.list - he's everywhere.

Dom is short for Dominating industry in the future.

Maounique

@debaser said: bought KPN International

Dat bad luck right there!