GTT Begins Formal Creditor Negotiations Over Bankruptcy Plan (1)

GTT Communications Inc. has started formal talks with creditors around a restructuring plan that would see its unsecured debt holders take ownership of the telecommunications company through a bankruptcy filing.

McLean, Virginia-based GTT is presenting creditors a proposal on Monday that would hand term loan holders a large cash payment from the $2.15 billion sale of its infrastructure unit, according to people with knowledge of the matter, who asked not to be identified discussing confidential negotiations. Lenders would also get new debt with a coupon in the 7% to 9% range and a portion of the reorganized equity.

GTT’s unsecured ...