GTT Communications Inc (NYSE: GTT) stock dropped by a margin of 14.61% to settle at $2.98.This company might not wait until its 30 bond coupon is due before filing for Chapter 11 bankruptcy protection.
The sale of assets
GTT Communications has spoken out regarding its agreement with 1 Squared Capital. It is a deal involving the company selling out its infrastructure assets to the 1 Square Capital. The company discloses that the filing will precede the assets sale. The corporate taxes seem to be weighing negatively on the creditors’ recovery prospects, but the company is holding up the best way any strong company would at such a difficult point.
It is a low moment for the company’s shareholders, considering that they are entitled to absolutely nothing in the bankruptcy plan. The plan to file for bankruptcy protection was hatched back in March, and it seems the company isn’t looking back on its quest.
Major setbacks
It happens to be a rather challenging moment for the company, considering the Covid-19 outbreak’s impact on business. It has become rather difficult to sell infrastructure for businesses globally. For example, the data business isn’t thriving as it used to before the outbreak of the deadly virus.
GTT spoke openly to the Us financial regulator, admitting that it had failed ISQ for failing to present it with the required information in good time. SEC outlined that the sellers had served it with sections of the reports before January 31. The stipulated date was the deadline, and the Securities and Exchange Commission asserts that it was inappropriate providing incomplete reports.
The right thing needs to be done, and GTT has been ordered to deliver comprehensive and complete information before March 8. This company, therefore ahs about two weeks to have played its part.
ISQ happens to be the owner of a Hong Kong carrier known as HGC Global Communications. The carrier distances itself from making any comments about the recent turn of events. A lot is happening, but matters must boil down to serving the various smaller cities with more expanded networks.