Global Cloud Xchange gets forbearance agreement

Global Cloud Xchange (GCX) has announced that the company has reached a forbearance agreement with an 87 percent group of its bondholders that provides additional time to discuss options related to the upcoming maturity of the USD 350m 7.00% Senior Secured Notes issued by GCX Limited, the company said.

Under the terms of the agreement, bondholders have committed not to take action for a minimum period of two weeks with the possibility of extending the agreement for an additional two weeks, assuming GCX continues to progress in its negotiations.

The forbearance agreement provides for, among other things, a two per cent consent fee payable to forbearing noteholders and payment of accrued interest to all noteholders (in each case with such amounts being added to the principal amount of the notes rather than being paid in cash); a fee equal to five percent of the outstanding principal amount of the bonds payable to forbearing noteholders if the notes are subsequently refinanced in full; the appointment of a Senior Managing Director of FTI Consulting as a Chief Restructuring Officer; and certain requirements that need to be fulfilled to maintain the forbearance agreement.

Global Cloud Xchange (GCX), a subsidiary of Reliance Communications, offers a comprehensive portfolio of solutions customized for carriers, enterprises and new media companies. With connections to 40 key business markets worldwide spanning Asia, North America, Europe and the Middle East, GCX delivers edge next generation Enterprise solutions to more than 160 countries globally across its Cloud Delivery Network.