GTT Communications, Inc. (OTCQX: GTTN) said that the United States Bankruptcy Court for the Southern District of New York has approved the company’s Prepackaged Plan.

The Prepackaged Plan enables GTT to improve its capital structure and execute its long-term business strategy, the company explained.

The combination of the recently completed infrastructure division sale and the transactions contemplated by the Prepackaged Plan will reduce the company’s debt by approximately US$2.8 billion.

GTT expects to emerge from the chapter 11 process following receipt of the necessary regulatory approvals for the restructuring.

Ernie Ortega, Chief Executive Officer of GTT, said: “With the court approval now behind us we are well-positioned with the resources we need to push forward with our long-term growth plan. We are grateful for the immense support we have received from our debtholders, customers, employees, vendors and other partners during this process.”

The group added that it continues to operate and serve its customers in the U.S. and globally without interruption.

Employees and partners are being paid in the ordinary course of business for obligations incurred prior to and after the commencement of the chapter 11 cases.

The company also has access to sufficient liquidity to operate its businesses including the payment of all such obligations.

GTT’s legal advisor in connection with the restructuring is Akin Gump Strauss Hauer & Feld LLP. Alvarez & Marsal North America, LLC serves as its restructuring advisor and TRS Advisors, a group within the investment banking division of Piper Sandler & Co., serves as its investment banker for the restructuring.

Meanwhile, GTT has announced three leadership appointments. The company has made Donna Granato Chief Financial Officer after serving in an interim capacity for approximately one year; Jim Delis has been appointed Division President for Americas; and Lisa Brown has been named Chief Marketing Officer.

Ortega said: “I am thrilled to announce these leadership team appointments. Donna, Lisa and their respective teams have done a remarkable job to date, and I am thankful for their continued leadership.

“It is also a pleasure to welcome Jim to GTT, and I look forward to his contributions as an industry veteran. I have tremendous confidence in our leadership team as we work together to transform the Company, execute our strategy and deliver for our customers.”

GTT sold its digital infrastructure business unit to I Squared Capital in September 2021 for $1.74 billion with further cash amounts lined up for payment contingent to agreed financial KPIs.