GTT to Get Court Approval for Plan to Halve $2 Billion Debt Load

GTT Communications Inc. will receive court approval for a restructuring plan that would convert its $2 billion of debt to equity and new borrowings, paving the way for the telecommunications firm to exit bankruptcy, a judge said in a hearing Wednesday.

U.S. Bankruptcy Court Judge Michael Wiles said he would approve the company’s plan to convert $1.4 billion of secured credit to an 88% stake of the new equity, a new term loan, and cash, according to the disclosure statement.

Its $575 million of unsecured notes will convert to 12% of the new equity, plus warrants that could convert ...