We advised Lone Star as the largest secured lender to GTT

Davis Polk advised LSF XI Investments, LLC and its affiliates (“Lone Star”), the company’s largest secured term loan lender, in connection with the chapter 11 restructuring of GTT Communications, Inc. On December 28, 2022, GTT’s second amended third modified plan of reorganization (the “Amended Plan”) was confirmed by the United States Bankruptcy Court for the Southern District of New York and the company emerged from chapter 11 pursuant to the Amended Plan on December 30, 2022.

On October 31, 2021, GTT filed a prepackaged plan of reorganization that was confirmed by the Bankruptcy Court on December 16, 2021. Following unforeseen delays to effectiveness and associated impacts to go-forward liquidity, GTT filed the Amended Plan on November 27, 2022. Pursuant to the Amended Plan, GTT’s funded debt will be reduced by $2.8 billion, with holders of secured term loans receiving 94.5% of the reorganized equity and approximately $783 million in take-back debt. The Davis Polk team worked with Lone Star to negotiate the terms of the Amended Plan, including modifications to the capital and governance structure of the reorganized company. Davis Polk also advised Lone Star with respect to GTT’s cross-border regulatory approval process, in which Lone Star played an active role and obtained equityholder-specific regulatory approvals in seven non-U.S. jurisdictions. Under reorganized GTT’s governance documents, Lone Star has the right to appoint two directors to reorganized GTT’s nine-member board.

GTT is a leading provider of managed network and security technologies to thousands of national and multinational companies. GTT’s suite of professional services includes SD-WAN, security, internet, voice and other connectivity options which are uniquely enabled by a top-ranked, global, Tier 1 IP backbone spanning more than 260 cities on six continents.

The Davis Polk restructuring team included partners Damian S. Schaible and David Schiff and associates Jonah A. Peppiatt and Amber Leary. Counsel Matthew Yeowart provided regulatory advice. The finance team included partner Scott M. Herrig and counsel Mayer J. Steinman. Partner Roshni Banker Cariello and counsel Robert (Bodie) Stewart provided capital markets advice. The corporate team included partners William L. Taylor. The tax team included partner Patrick E. Sigmon. Partners Elliot Moskowitz and Tatiana R. Martins provided litigation advice. Members of the Davis Polk team are based in the New York and London offices.

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