The company was due to pay back $350 million worth of bonds on 1 August, but it won a forbearance agreement, backed by 87% of bondholders, giving it an extra two weeks, a term that has just expired.
Now those bondholders say they will wait until 1 September for their money – though this may be the beginning of a long process by which Global Cloud Xchange (GCX) gets successive stays of execution, two weeks at a time.
GCX said it “will continue evaluating opportunities to restructure its debt in a manner that best positions the company for long-term growth and success”.
Meanwhile, in an interview to be published in the August/September issue of Capacity, CEO Bill Barney (pictured) said he expects to find a buyer for GCX “within 90 days”, though he warned that there might be “an extension of a month or two” after that – taking the deadline to early January.
Earlier this year GCX recruited the investment bank Lazard to find the company a new owner.
Once a buyer is found, the company is expected to proceed with its plans for a new 20Tbps Marseille-Mumbai-Singapore cable, Eagle.
