By Becky Yerak
Global Cloud Xchange filed for bankruptcy protection Sunday after reaching a deal with lenders that will erase $150 million in debt and hands control of the telecommunications company to its senior bondholders.
The company, a subsidiary of India's Reliance Communications also known as GCX, said more than 75% committed to back the debt-for-equity swap, which will be completed through a prepackaged chapter 11 plan in U.S. Bankruptcy Court in Wilmington, Del.
Prepackaged plans, meaning a sufficient number of creditors have already voted to approve a deal, have become increasingly popular with companies looking to reduce the time and expense spent in the chapter 11 process.
The chapter 11 filing comes after the company said it had struck a forbearance agreement in July with bondholders over the restructuring of $350 million in bonds issued by GCX Ltd.
GCX's bankruptcy adviser include by Lazard, Paul Hastings LLP and FTI Consulting, Inc.
Judge Christopher Sontchi has been assigned the case, number 19-12029.